UPS AND DOWNS
Radiant Systems, Mail.com, Sensormatic, Yahoo!, Waste Management, iVillage and other market movers... August 3, 1999
UPSRadiant Systems (Nasdaq: RADS), which makes software systems for retailers, glowed $3 3/16 to $19 3/8 after announcing a deal with America Online (NYSE: AOL) that will include an investment in the software company by the online services giant. The companies will work together to development interactive systems used on point-of-sale devices.
Internet messaging services provider Mail.com (Nasdaq: MAIL) delivered $1 3/16 to $16 5/16 after saying it will provide Web-based e-mail services for PC maker Dell's (Nasdaq: DELL) new Dellnet consumer website.
Security systems maker Sensormatic Electronics (NYSE: SRM) moved up $1 7/16 to $14 after reporting fiscal Q4 EPS of $0.26, up from $0.11 per share last year and in line with First Call's five-analyst consensus estimate. Revenues for the quarter were $294.4 million, up nearly 13% from a year ago, while operating expenses dropped 2%.
Pokemon licensee 4Kids Entertainment (Nasdaq: KIDE), an April Foolish Double thanks in no small part to the irrepressibly cute Pikachu, powered up $5 9/16 to $46 15/16 today reportedly on takeover speculation. Chairman and CEO Alfred Kahn wouldn't say whether the company was in talks to be bought out.
Digital broadcast satellite (DBS) television system operator EchoStar Communications Corp. (Nasdaq: DISH) was launched $7 to $71 1/2 after being upgraded to "buy" from "market perform" by Banc of America Securities. CE Unterberg Towbin also raised its rating on the firm to "buy" from "long term buy."
Dairy processor and distributor Suiza Foods Corp. (NYSE: SZA) moo-ved up $2 5/8 to $32 5/8 after combining its Southern California dairy operations with the Dairy Farmers of America, a move which will strengthen the company's presence in the area and add to earnings in the second year of combined operations.
Cincinnati-based savings and loan holding company OHSL Financial (Nasdaq: OHSL) jumped $6 to $21 1/4 after agreeing to be acquired by commercial bank and financial services company Provident Financial Group (Nasdaq: PFGI) for about $57 million in stock, which works out to about $22.50 per OHSI share, subject to a collar.
DOWNSWeb portal Yahoo! (Nasdaq: YHOO) slipped $6 15/16 to $125 3/8 today, possibly on investor disappointment after Excite@Home (Nasdaq: ATHM) President George Bell told a BancBoston Robertson Stephens technology conference that there was "no truth" to a story in Business Week's online edition reporting that the two companies are in merger talks. Excite@Home ended the day up $7/16 at $43 3/8.
For more on the earlier report, see today's Breakfast With the Fool.
Trash hauler Waste Management (NYSE: WMI) was tossed for a $1 1/4 loss to $24 3/16 after posting Q2 EPS of $0.58, below the First Call mean estimate of $0.60 and at the low end of the $0.58 to $0.60 range given by the company in an earnings warning last week. The company also said it may trim its Q1 earnings by $0.09 per share due to errors in calculating reserve accounts for some of its landfills.
Online women's network operator iVillage (Nasdaq: IVIL) was ransacked for a $3 1/2 loss to $36 5/8 after reporting a Q2 loss of $0.72 per share, which was not quite as bad as the loss of $0.76 per share expected by analysts surveyed by First Call. Before the bell, the company tried to stem the market's negative reaction by issuing a separate press release stating that its revenues for Q4 and the full-year 2000 could come in about 20% above current estimates.
Dental, medical, and veterinary supplies distributor Henry Schein (Nasdaq: HSIC) shed $5 3/8 to $15 1/2 after saying its Q2 dental product sales were a less-than-expected $261 million, down 8% from last year's levels. The company added that dental sales will be roughly flat in the third and fourth quarters, which will have a "disproportionate negative impact" on earnings for the rest of the year.
Specialty drug distributor Priority Healthcare Corp. (Nasdaq: PHCC) slumped $9 5/8 to $34 on fears that it will lose some of its hepatitis treatment business as a result of Schering Plough (NYSE: SGP) naming MedPartner's (NYSE: MDM) Caremark unit as a preferred provider for its Rebetron drug. In a statement, Priority CEO Bob Myers said Caremark's deal will not affect Priority's status as a Schering preferred provider and did not represent anything "new or different" from what had already existed in the marketplace.
Disability insurer UnumProvident (NYSE: UNM) was whacked for a $15 5/16 loss to $36 3/8 after saying $13 million in incremental costs associated with the merger of Unum and Provident resulted in Q2 operating EPS of $0.66, down from $0.69 a year ago and a dime short of the First Call mean estimate. Merrill Lynch and Credit Suisse First Boston lowered their ratings on the firm.
Pain management products developer Algos Pharmaceutical Corp. (Nasdaq: ALGO) was trounced for a $14 5/16 loss to $9 15/16 after receiving a "not approvable" letter from the FDA for its MorphiDex analgesic for treating moderate to severe cancer pain. The company said it is "moving forward" to address the issues raised by the FDA that led to the rejection of the treatment's new drug application (NDA).
Discount airline travel tickets seller Cheap Tickets (Nasdaq: CTIX) got a little cheaper today, falling $7 1/2 to $44 after filing a 5 million share secondary offering with the SEC, which includes 2.5 million shares to be sold by existing shareholders.