Fool.com: Internet Capital Group, HomeStore.com, CNET, Schwab, AOL, Gap... (Ups and Downs) August 5, 1999

UPS AND DOWNS

Internet Capital Group, HomeStore.com, CNET, Schwab, AOL, Gap, ICN Pharmaceuticals, and other movers...

August 5, 1999

UPS

Internet start-ups investment firm Internet Capital Group (Nasdaq: ICGE) surged $12 7/16 to $24 7/16 in its first day of trading after selling a total of 14.9 million shares in an initial public offering at a price of $12 per share. Some 3.7 million of the shares offered were set aside for shareholders of parent Safeguard Scientifics (NYSE: SFE), which founded Internet Capital in 1996.

Real estate website operator HomeStore.com (Nasdaq: HOMS) shot up $2 3/4 to $22 3/4 in its first day of trading. The company yesterday sold 7 million shares to the public for $20 each. Systems management software company Mission Critical Software 's (Nasdaq: MCSW) IPO was also successful, the shares adding $9 7/16 to $25 7/16 after the company sold 3.75 million shares for $16 apiece.

TV and Web content provider CNET (Nasdaq: CNET) moved up $5 9/16 to $35 7/8 today. The company opened an online store building service for technology merchants. CNET is offering the service for free until October 1st, after which it will cost between $25 and $100 per month depending on the size of the store.

Online brokerage Charles Schwab (NYSE: SCH) moved up $4 3/4 to $41 3/4 after Warburg Dillon Read analyst Clare Nicksonhavens started the stock with a "buy" rating and a $55 per share 12-month price target.

Network switching systems company Tekelec (Nasdaq: TKLC), which said Q2 EPS was $0.08, a penny better than First Call's five-analyst consensus estimate, gained $2 1/8 to $11 1/4. "Our commitment to R&D led to several product introductions during the quarter that create the foundation for Tekelec's future, including the IP7 product line and DaVinci VoX Gateway Controller, said CEO Michael Margolis, but "we don't anticipate volume shipments before the second half of next year.'' CFO Gilles Godin resigned effective Oct. 4.

Internet investment banking and brokerage firm Wit Capital (Nasdaq: WITC) jumped ahead $4 1/8 to $21 1/4 after signing an agreement to be the exclusive tenant of America Online's (NYSE: AOL) After Hours Center, which will launch this fall, for six months. The After Hours Center will provide AOL members with information about the ability to trade in stocks after normal market hours and will promote Wit Capital's site.

"System on a chip" company LSI Logic (NYSE: LSI), which last night said it decided not to go ahead with a planned offering of $287 million of convertible subordinated debt and as many as 5.75 million shares of common stock, advanced $4 3/16 to $51 11/16 today.

Home entertainment and consumer electronics products retailer Ultimate Electronics (Nasdaq: ULTE) jumped $3 1/2 to $17 1/2 after the company said it expects Q2 EPS of "at least $0.12," ahead of First Call's four-analyst consensus estimate of $0.07. Sales for the quarter ended July 31 were $86 million, up 21% from last year, while comparable-store sales were up 20%.

DOWNS

Online services giant America Online (NYSE: AOL) fell $4 7/16 to $83 after an article in today's Wall Street Journal raised fears that software titan Microsoft (Nasdaq: MSFT) may threaten the company's business by offering a free Web access service. Internet service provider Prodigy Communications (Nasdaq: PRGY) lost $1 1/4 to $17 and EarthLink Network (Nasdaq: ELNK) shed $3 5/16 to $37 1/16. For more on this story, see today's Breakfast With the Fool.

Commodity clothing retailer Gap Inc. (NYSE: GPS) sank $3 7/16 to $39 7/8 after reporting a 2% rise in July same-store sales compared to 19% growth during the same period a year ago, which was reportedly below analysts' expectations. For more same-store sales figures, see our Retail Details.

Drug maker ICN Pharmaceuticals (NYSE: ICN) slumped $4 1/16 to $20 3/4 after reporting Q2 EPS of $0.32, better than last year's loss of $1.34 per share but $0.07 short of the First Call mean estimate.

Biopharmaceutical company Aronex Pharmaceuticals (Nasdaq: ARNX) dropped $2 7/16 to $4 1/2 after its invitation to present the new drug application for its Atragen treatment for acute promyelocytic leukemia before an FDA advisory committee next month was withdrawn due to "deficiencies" in the drug's filing.

Pharmaceutical contract research organization Kendle International (Nasdaq: KNDL) was crunched $4 to $10 3/4 after saying higher personnel expenses, the downward revaluation of two contracts, lower interest income, and currency-related losses resulted in Q2 EPS of $0.14, missing the First Call mean estimate of $0.21.

The Cobalt Group (Nasdaq: CBLT), which provides online marketing and data aggregation services to car dealers, was rocked for a $2 11/16 loss to $8 5/16 after selling 4.5 million shares in an initial public offering at a price of $11 per share.

High-end retailer Neiman-Marcus Group (NYSE: NMG) was marked down for a $2 1/16 loss to $21 3/4 after warning that weaker-than-expected summer revenues will lead to fiscal Q4 EPS up to $0.05 below the Street's estimate of $0.10 to $0.11. For the full year, the company is expecting EPS of about $1.90, below the previous expectation of $1.95.

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