Silke
05.03.2001, 13:57
Coke, Cymer, Gilead, Vitesse Semi
By Michael Baron, CBS.MarketWatch.com
Last Update: 7:53 AM ET Mar 5, 2001
Stocks to watch
Coca-Cola (KO: news, msgs, alerts) announced a new management structure Sunday that includes the departure of its president and chief operating officer Jack Stahl. The new structure creates four business units whose heads will all report to Chairman and CEO Doug Daft. Coke shares closed down 88 cents at $52.55 Friday.
Cymer (CYMI: news, msgs, alerts) lowered its revenue targets for the first quarter and 2001 year, citing lower fab utilization rates and reduced capital spending among semiconductor manufacturers. Cymer said it expects first-quarter revenue to be 8 percent to 10 percent lower than the comparable year-earlier quarter. The company also said it expects fiscal year 2001 revenue to come in 5 percent to 10 percent lower than fiscal year 2000, excluding the effects of foreign exchange. The company expects further sequential quarterly declines in revenue and income to occur before it will see a return to quarterly growth. Shares closed down 6 cents to $22.13.
EBay (EBAY: news, msgs, alerts) said Friday that it settled its lawsuit against Bidder's Edge, which agreed to stop listing EBay content on its site. Bidder's Edge will also pay EBay an undisclosed sum of money. Shares of the online auctioneer closed up 19 cents to $37.69.
General Electric (GE: news, msgs, alerts) is close to selling its satellite services business to Societe Europeenne des Satellites SA of Luxembourg for between $4.5 billion and $5 billion in cash and stock, The Wall Street Journal reported. GE shares closed down $1.34 at $44.57 on Friday.
Gilead Science (GILD: news, msgs, alerts) shares could get a boost after a Barron's article Saturday said the company could profit from its HIV/AIDS drug Tenofovir that's in its final stages of development. Because the drug has fast-track review status, it could be launched in the U.S. by the end of the year. The drug appears to work in cases where the virus has developed resistance to other drugs, and it might be the first one-pill-a-day drug for HIV, the article said. Shares of the Foster City, Calif.-based biotech company finished up 75 cents, or 2.1 percent, to $35.88.
Iron Mountain's (IRM: news, msgs, alerts) DSI Technology Escrow Services unit has acquired the assets of Fort Knox Escrow Services. Iron Mountain is a records and information management company based in Boston. Terms of the deal were not disclosed. Shares closed up 89 cents at $40.46.
Kinder Morgan (KMI: news, msgs, alerts) said it has retired $400 million in Reset Put Securities due March 2021, using cash and short-term borrowings. Retiring the securities will immediately add to earnings per share due to decreased interest expense and lowered long-term debt. KMI will report a one-time extraordinary loss of roughly $12 million in the first-quarter 2001 due to early extinguishments. Shares of the Houston-based energy firm closed up 47 cents at $55.70.
Northwest Airlines' (NWAC: news, msgs, alerts) mechanics union voted to strike March 12 if no agreement is reached when the union meets with the airline March 7. Northwest said the strike was expected as part of the normal bargaining process. The airline also added that it's illegal for the mechanics union to strike or take any "random" job actions. Northwest said that President Bush has said he will appoint an emergency board that could delay any strike by 60 days if no agreement is reached. Regardless of the strike, Northwest said it will continue to fly a full schedule. Shares closed up 88 cents, or 4.1 percent, to $22.19.
UDI (UDI: news, msgs, alerts) said it's in talks "concerning a possible acquisition." Shares closed up 11 cents at $18.15.
UPS said (UPS: news, msgs, alerts) said after the closing bell Friday that it will acquire Mail Boxes Etc., a subsidiary of US Office Products. Atlanta-based UPS said it's buying MBE to expand its small business, e-commerce and financial services offerings. UPS said it will acquire the assets of MBE but no terms were given. UPS shares closed up 94 cents, or 1.7 percent, to $56.94.
Vitesse Semiconductor (VTSS: news, msgs, alerts) cut its revenue forecast for the second quarter to $150 millon to $160 million, from $180 million to $190 million. Vitesse also cut its profit outlook for the period to 21 cents to 22 cents per share, from 26 cents to 27 cents. The shares closed Friday at $37.50.
Water stocks could spurt in trading after Barron's looked favorably upon the sector Saturday. Mentioned as analyst favorites were American Water Works (AWK: news, msgs, alerts) and Philadelphia Suburban (PSC: news, msgs, alerts) . Gas or electric utilities likely to put their water units on the block are Sierra Pacific Networks (SRP: news, msgs, alerts) , NiSource (NI: news, msgs, alerts) , and DQE (DQE: news, msgs, alerts) . Also mentioned as performing well were companies focused on water and wastewater treatment such as Cuno (CUNO: news, msgs, alerts) , Ionics (ION: news, msgs, alerts) , Instituform (INSUA: news, msgs, alerts) and Tetra Tech (TTEK: news, msgs, alerts) .
Michael Baron is a reporter for CBS.MarketWatch.com based in New York.
By Michael Baron, CBS.MarketWatch.com
Last Update: 7:53 AM ET Mar 5, 2001
Stocks to watch
Coca-Cola (KO: news, msgs, alerts) announced a new management structure Sunday that includes the departure of its president and chief operating officer Jack Stahl. The new structure creates four business units whose heads will all report to Chairman and CEO Doug Daft. Coke shares closed down 88 cents at $52.55 Friday.
Cymer (CYMI: news, msgs, alerts) lowered its revenue targets for the first quarter and 2001 year, citing lower fab utilization rates and reduced capital spending among semiconductor manufacturers. Cymer said it expects first-quarter revenue to be 8 percent to 10 percent lower than the comparable year-earlier quarter. The company also said it expects fiscal year 2001 revenue to come in 5 percent to 10 percent lower than fiscal year 2000, excluding the effects of foreign exchange. The company expects further sequential quarterly declines in revenue and income to occur before it will see a return to quarterly growth. Shares closed down 6 cents to $22.13.
EBay (EBAY: news, msgs, alerts) said Friday that it settled its lawsuit against Bidder's Edge, which agreed to stop listing EBay content on its site. Bidder's Edge will also pay EBay an undisclosed sum of money. Shares of the online auctioneer closed up 19 cents to $37.69.
General Electric (GE: news, msgs, alerts) is close to selling its satellite services business to Societe Europeenne des Satellites SA of Luxembourg for between $4.5 billion and $5 billion in cash and stock, The Wall Street Journal reported. GE shares closed down $1.34 at $44.57 on Friday.
Gilead Science (GILD: news, msgs, alerts) shares could get a boost after a Barron's article Saturday said the company could profit from its HIV/AIDS drug Tenofovir that's in its final stages of development. Because the drug has fast-track review status, it could be launched in the U.S. by the end of the year. The drug appears to work in cases where the virus has developed resistance to other drugs, and it might be the first one-pill-a-day drug for HIV, the article said. Shares of the Foster City, Calif.-based biotech company finished up 75 cents, or 2.1 percent, to $35.88.
Iron Mountain's (IRM: news, msgs, alerts) DSI Technology Escrow Services unit has acquired the assets of Fort Knox Escrow Services. Iron Mountain is a records and information management company based in Boston. Terms of the deal were not disclosed. Shares closed up 89 cents at $40.46.
Kinder Morgan (KMI: news, msgs, alerts) said it has retired $400 million in Reset Put Securities due March 2021, using cash and short-term borrowings. Retiring the securities will immediately add to earnings per share due to decreased interest expense and lowered long-term debt. KMI will report a one-time extraordinary loss of roughly $12 million in the first-quarter 2001 due to early extinguishments. Shares of the Houston-based energy firm closed up 47 cents at $55.70.
Northwest Airlines' (NWAC: news, msgs, alerts) mechanics union voted to strike March 12 if no agreement is reached when the union meets with the airline March 7. Northwest said the strike was expected as part of the normal bargaining process. The airline also added that it's illegal for the mechanics union to strike or take any "random" job actions. Northwest said that President Bush has said he will appoint an emergency board that could delay any strike by 60 days if no agreement is reached. Regardless of the strike, Northwest said it will continue to fly a full schedule. Shares closed up 88 cents, or 4.1 percent, to $22.19.
UDI (UDI: news, msgs, alerts) said it's in talks "concerning a possible acquisition." Shares closed up 11 cents at $18.15.
UPS said (UPS: news, msgs, alerts) said after the closing bell Friday that it will acquire Mail Boxes Etc., a subsidiary of US Office Products. Atlanta-based UPS said it's buying MBE to expand its small business, e-commerce and financial services offerings. UPS said it will acquire the assets of MBE but no terms were given. UPS shares closed up 94 cents, or 1.7 percent, to $56.94.
Vitesse Semiconductor (VTSS: news, msgs, alerts) cut its revenue forecast for the second quarter to $150 millon to $160 million, from $180 million to $190 million. Vitesse also cut its profit outlook for the period to 21 cents to 22 cents per share, from 26 cents to 27 cents. The shares closed Friday at $37.50.
Water stocks could spurt in trading after Barron's looked favorably upon the sector Saturday. Mentioned as analyst favorites were American Water Works (AWK: news, msgs, alerts) and Philadelphia Suburban (PSC: news, msgs, alerts) . Gas or electric utilities likely to put their water units on the block are Sierra Pacific Networks (SRP: news, msgs, alerts) , NiSource (NI: news, msgs, alerts) , and DQE (DQE: news, msgs, alerts) . Also mentioned as performing well were companies focused on water and wastewater treatment such as Cuno (CUNO: news, msgs, alerts) , Ionics (ION: news, msgs, alerts) , Instituform (INSUA: news, msgs, alerts) and Tetra Tech (TTEK: news, msgs, alerts) .
Michael Baron is a reporter for CBS.MarketWatch.com based in New York.