ONLINE SPORTSBOOKS

Go Back   MajorWager Forums > MW - Online Sportsbooks > Stock Talk
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

Stock Talk Stock tips, opinions and analysis

Reply
 
LinkBack Thread Tools
  #1 (permalink)  
Old 12-15-2003, 09:53 AM
jjgold jjgold is offline
Five Star General
 
Join Date: Jan 2002
Posts: 45,795
Default Tech Reports Monday

Tech stocks struggled for direction on Friday, reflecting investors' conflict over a hazy picture painted by mixed economic data. Shares opened marginally higher after the U.S. Department of Labor reported that U.S. wholesale prices fell 0.3% in November vs. consensus expectation for a gain of 0.1%. But shares slipped into negative territory within fifteen minutes of opening trade after preliminary December data on consumer sentiment from the University of Michigan registered an unexpected drop to 89.6. At session's end, the 18-company Philadelphia Semiconductor Index (SOXX 496.15 -0.74) was down a modest 0.15%; decliners matched advancers, with decliners dropping 1.1% and gainers rising 0.8%. The Briefing.com Tech Index, a composite of over 1000 tech companies, ended the day up 0.9%. Advancers led decliners 1.4:1; advancers rose 2.9% and decliners slipped 1.8%.

The drop in the PPI was the first decline since May, helping to ease near-term concerns over inflation. But the unexpected drop in consumer sentiment stoked fears of lower-than-expected growth necessary to float shares at current valuations. This uncertainty dampens investor enthusiasm for tech shares. Without a catalyst to propel shares forward, investors have little impetus to buy or sell other than on short-term technicals, and we would expect this to reflect in share performance through December.

Looking ahead, focus on the CPI and Industrial Production / Capacity Utilization on Tuesday for a read on enterprise capital spending and why we think the Fed is likely to sit tight on rates. Other economic releases next week include the Empire State Index on Monday, Housing Starts and Building Permits and the Current Account for Q3 on Tuesday, Initial Unemployment Claims and Index of Leading Indicators on Thursday, and the Philadelphia Fed Index on Friday.
__________________
"JJ Call me a 2'x4' again on the forum and your going to pay" Sportman.
Reply With Quote
  #2 (permalink)  
Old 12-15-2003, 09:53 AM
jjgold jjgold is offline
Five Star General
 
Join Date: Jan 2002
Posts: 45,795
Default

Computer Systems & Peripherals
Advanced Digital (ADIC) 13.84 +0.68: Bear Stearns upgraded Peer Perform to OUTPERFORM. Cited compelling valuation, continued busines momentum with products and customers, and potential for earnings upside.

Authentidate Holding (ADAT) 11.35 -0.13: Business Week Online highlighted AuthentiDate Holding as a stock peeking the interest of investors. ADAT has technology that lets users time-stamp electronic documents, such as e-mail and electronic payments, and verify the authenticity of signatures. In 2002, the Postal Service signed a five-year pact to use the technology in its new Electronic Postmark product. And Microsoft, which co-developed the technology, has made it an add-on to its Word program. CEO John Botti says AuthentiDate gets paid about 80 cents per signature. David Lavigne of EdgeWater Research says the market is huge because of the big savings for users, mainly corporate enterprises and the government. Lavigne sees the stock hitting 21 in 12 -18 months. He expects ADAT to be profitable in the fiscal year ending June 30, 2005, earning $0.90 cents on sales of $78 mln and, for 2006, $1.54 on $123 mln... (also see Briefing.com Small Cap Focus column for Oct 15 write-up on ADAT)

First Albany initiated coverage of IT hardware & storage infrastructure : First Albany initiated coverage of IT hardware & storage infrastructure sectors. The firm believes IT spending will continue to improve, although near-term growth rates may be lower than expected, due to secular dynamics and fundamental structural changes within these industries. Growth in networked storage will likely continue to outpace that of other sectors, while the migration from hardware to software and services should continue for the foreseeable future... The firm starts coverage on 12 stocks: Apple Computer (AAPL Neutral), Brocade (BRCD Neutral), Dell (DELL Buy, $40 tgt), EMC (EMC Neutral), Gateway (GTW Underperform), Hewlett-Packard (HPQ Neutral), IBM (IBM Buy, $102 tgt), Ingram Micro (IM Neutral), McDATA (MCDTA Buy, $10 tgt), Network Appliance (NTAP Neutral), Sun Micro (SUNW Underperform), and Tech Data (TECD Neutral).

Red Hat (RHAT) 13.46 +0.10: WR Hambrecht reiterated their Buy rating on Red Hat after the co announced that it has expanded its relationship with IBM to package Red Hat Enterprise Linux with IBM xSeries and BladeCenter servers; firm says this agreement is likely to help drive Linux adoption in the enterprise, demonstrates IBM's commitment to the Red Hat relationship, and should allay investor concern following IBM's investment in Novell-SuSE.

Networking
Nasdaq-100 adds eight new names to Index : Nasdaq announced that the following eight stocks will be added to the Nasdaq-100 Index: Marvell (MRVL), Garmin (GRMN), CareerEducation (CECO), Lam Research (LRCX), Level 3 Communications (LVLT), Intersil (ISIL), ATI Technologies (ATYT) and Research in Motion (RIMM)... Being removed from the Nasdaq-100 are ADCT, BRCD, CIEN, ERICY, HGSI, ICOS, MNST, RFMD... The changes will be effective with the market open on Monday, Dec 22.

Internet
Ameritrade (AMTD) 12.97 +0.73: Co. raised it Q1 EPS guidance to $0.14-0.17, Reuters Research consensus is $0.14 and see Y04 (Sep) EPS in the range of $0.37-0.59, estimate is $0.55.

China.com (CHINA) 8.67 +0.84: Co announced it intends to reorganize its mobile and portal unit as a wholly-owned subsidiary, chinadotcom Mobile Interactive Corporation ("CDC Mobile") and register an offering of CDC Mobile's American Depositary Shares. The offering is expected to commence in the first half of 2004, subject to SEC effectiveness and the receipt of all necessary approvals. Wall St Journal highlights China.com. Article says that three years after the Internet bubble burst, chinadotcom is reshaping itself to ride the next big wave: software and data services in China. chinadotcom is using its stash of cash to buy struggling software concerns in North America and Europe and bring their products to China. In some cases, it is moving software development to its lower-cost programmers in Shanghai. During the past four months, the co has agreed to spend about $145 mln for three software firms and the license to one software product. The co's plan is to build a portfolio of software products to sell to China's surging manufacturing businesses, many of which still rely heavily on clipboards and carbon paper to manage information. However, the co has yet to see any significant revenue from its new ventures and it's embarking on this strategy at a moment when overseas outsourcing is coming under fire in the US... see 07:32 comment for additional news.

j2 Global Communications (JCOM) 23.95 +0.36: Pacific Growth out positive on name (OPENX) 23.59: Pacific Growth believe shares of j2 Global (JCOM) are significantly undervalued, noting that share price has declined more than 50% since 3Q:03 was reported. Firm finds that many investors overestimate co's exposure to the mortgage industry (only about 8% of total revs). Trading at only 21x firm's fully taxed 2004 earnings estimate, believes shares represent a strong buying opportunity.

Quotesmith.com (QUOT) 4.60 +0.01: Co slightly lowered its previous guidance announced on 10/2. Co sees Y03 (Dec) revenue of $9.4-9.8 mln (previous guidance was $9.5-10.0 mln) and announces Y04 guidance of revenues in the range of $11-13 mln. No estimates were available for QUOT.

ValueClick (VCLK) 8.67 -0.28: Co signed a definitive agreement to acquire Hi-Speed Media, a privately-held opt-in email marketing services company located in Los Angeles. Hi-Speed's more than 300 clients include Equifax, LendingTree.com, United Online and InsuranceWeb.

VeriSign (VRSN) 15.85 +0.01: Legg Mason reiterated its Buy on VeriSign (VRSN) and raised its target price to $20 from $17 as the stock remains attractive from a valuation perspective. The firm believes the fundamental outlook continues to improve and has confidence in the co's ability to hit estimates over the next several quarters. As part of its bus tour earlier this week, the firm met with Dana Evan, CFO of VeriSign. Overall tone of meeting was positive and walked away with increased confidence VRSN on track to meet the firm's 4Q03 forecasts.

Zix Corp (ZIXI) 7.16 +0.41: Co announced a new contract with one of the largest publicly traded health benefits companies in the U.S. for hosted anti-spam and anti-virus services, along with a renewal of its secure e-messaging contract. The contracts, which together have a value of $450,000 on an annual basis, will provide protection services to more than 20,000 employees
__________________
"JJ Call me a 2'x4' again on the forum and your going to pay" Sportman.
Reply With Quote
  #3 (permalink)  
Old 12-15-2003, 09:54 AM
jjgold jjgold is offline
Five Star General
 
Join Date: Jan 2002
Posts: 45,795
Default

Semiconductor
Cirrus Logic (CRUS) 7.77 +0.38: Ferris Baker Watts initiated coverage of Cirrus Logic with a Buy rating and $12 target; firm believes that the co has turned the corner regarding efforts to reduce headcount, lower costs and expenses, and strategically align the co toward core audio and video competencies, and as such, they believe CRUS has embarked on a tangible path to profitability; firm also thinks that CRUS is seeing secular strength from the proliferation of professional and consumer digital audio devices, coupled with the onset of a very significant DVD recorder product cycle.

Xicor (XICO) 11.26 +0.32: RBC Capital initiated coverage of Xicor (XICO 11.26 +0.32) with an Outperform rating and $15 target; firm says that since the arrival of a new CEO in 2001, the co has undergone a radical metamorphosis away from commodity memory towards high-end mixed signal analog; in addition, the co's proprietary technology should give it an strategic technology edge and help it gain mkt share, gross margins should expand in 2004 to 55%, and firm notes that given the co's small quarterly run rates, just a few design wins can cause significant upsides to ests. Firm also says that the co's profile seems to be arousing considerable interest from other analog co's as a potential acquisition target.
ESS Hearing that weakness in stock today is being driven by a DigiTimes report that MediaTek, a major Taiwan-based optical storage chip design firm, today introduced its third-generation integrated DVD player chip, which it claims to be the world's first RF-integrated DVD system-on-chip solution supporting the DivX Pro MPEG-4 video format... Hearing that market is viewing this introduction as a competitive threat to ESS Technology.


Xicor (XICO) 11.26 +0.32: RBC Capital initiated coverage of Xicor (XICO 11.26 +0.32) with an Outperform rating and $15 target; firm says that since the arrival of a new CEO in 2001, the co has undergone a radical metamorphosis away from commodity memory towards high-end mixed signal analog; in addition, the co's proprietary technology should give it an strategic technology edge and help it gain mkt share, gross margins should expand in 2004 to 55%, and firm notes that given the co's small quarterly run rates, just a few design wins can cause significant upsides to ests. Firm also says that the co's profile seems to be arousing considerable interest from other analog co's as a potential acquisition target.
ESS Tech (ESST 16.01 -0.27) Hearing that weakness in stock today is being driven by a DigiTimes report that MediaTek, a major Taiwan-based optical storage chip design firm, today introduced its third-generation integrated DVD player chip, which it claims to be the world's first RF-integrated DVD system-on-chip solution supporting the DivX Pro MPEG-4 video format... Hearing that market is viewing this introduction as a competitive threat to ESS Technology.


Semi Equipment
Brooks Automation (BRKS) 21.82 +1.23: Soundview Technology upgraded Neutral to OUTPERFORM. Target $22 to $30. Cites compelling valuation, co's continued focus on operational improvements, and fact that factory hardware may finally be turning corner.

JP Morgan reits Overweight on semi equipment : JP Morgan believes that equipment stocks are again significantly oversold within an uptrend; firm says that seasonality is playing out, expects bookings for equipment to grow 15-20% sequentially through Q2, forecasts the YoY growth rate in semi revs to accelerate into next May or June, and expects chip and equipment lead times to stretch into Q2; firm also expects equipment stocks to rise in late Dec in anticipation of early stage buying, expects a solid earnings season, and thinks that equipment co's should start delivering positive EPS surprises with forward guidance above consensus. Top picks ASML, KLAC, LRCX, VSEA, BRKS, and CYMI.

Software
: Intrado (TRDO 19.25 +0.10). Specifically, firm believes AT&T has selected Intrado (TRDO) to provide E-911 services for its new VoIP initiative, announced yesterday. Firm views Intrado as a legitimate player in the fast growing VoIP market. Considering the news regarding AT&T, past successes in signing other VoIP players, and the high probability of reporting a strong Q4, firm believes Intrado shares could trade substantially higher. Wedbush Morgan is taking a somewhat more cautious stance toward PeopleSoft (PSFT) 1Q04 license revenue estimate, lowering license rev estimate from $150 mln to $140 mln. Firm is shifting $10 mln of license revenue out of Q1 and into the 2H04; thus, there is no change to the full-year license revenue est of $700 mln but it is still at the low end of the co's guidance $700-$715 mln). Firm has also lowered its Q1 rev est to $635 mln (previous $645 mln) and Q1 EPS estimates to $0.17 (previous $0.18). The lowering of estimates are due to concerns of the lingering Oracle bid, some expected sales-force reshuffling, a still-cautious corporate IT spending environment, and a more seasonal J.D. Edwards license revenue stream. Eclipsys (ECLP 10.79 +0.25) Roth Capital initiated coverage of Eclipsys (ECLP) with a Strong Buy rating and $16 target; firm believes the recent scare regarding the response time problems with SunriseXA's workflow engine was the sole reason for the stock's 40% plunge, and as such, they feel that the resolution of this issue signifies greener pastures ahead; while firm thinks Q4 will be a disappointment as deals in the pipeline are likely being deferred, the co's announcement on the improved response time from merging the SunriseXA database with its Sunrise Clinical Manager workflow engine leads them to believe the co will resume its momentum beginning in Q1.
Ascential Software (ASCL 24.66 +0.89). McDonald Investments initiated coverage of Ascential Software (ASCL) with a Buy rating and $30 target; firm believes that the data integration mkt is set to see renewed growth in 2004 as customers continue to start new business intelligence projects and as new types of analytical tools are delivered, and firm thinks that the co can outgrow the broader business intelligence software mkt, which remains one of the most attractive segments in the software industry.


EDS (EDS) 22.76 -0.05: AP reported that the British tax agency will drop Electronic Data Systems Corp. as its technology adviser and enter negotiations with a rival bidder for a 10-year contract worth about $5 billion. The decision was not a complete surprise. In May, chairman of Inland Revenue, Sir Nicholas Montagu, publicly criticized EDS after some tax credits didn't get paid. A Sanford Bernstein analyst estimated the contract's loss would strip EDS of about 2% of its revenue, or $0.05 a share in annual earnings.

Epicor Software (EPIC) 12.50 +1.69: Co and Scala Business Solutions announced Epicor's friendly public offer to acquire all shares of Scala. The offer is made up of a cash price of US$1.8230 per Scala share plus 0.1795 shares of Epicor's common stock. The merger would create the largest independent midmarket provider of collaborative enterprise resource planning, customer relationship management and supply chain management applications based on Microsoft's .NET platform and Web services. The combined co would have $250 mln in sales. Needham initiated coverage of Epicor Software (EPIC) with a Strong Buy rating and $16 target; firm says the mkt-mkt presents an above average growth opportunity, and they estimate that core rev growth is accelerating from low to high single-digits, with margins producing faster earnings growth. (Note that the co made a bid for Scala this morning... see 7:12 comment.).

Red Hat (RHAT) 13.46 +0.10: WR Hambrecht reiterated their Buy rating on Red Hat after the co announced that it has expanded its relationship with IBM to package Red Hat Enterprise Linux with IBM xSeries and BladeCenter servers; firm says this agreement is likely to help drive Linux adoption in the enterprise, demonstrates IBM's commitment to the Red Hat relationship, and should allay investor concern following IBM's investment in Novell-SuSE.

Unisys (UIS) 14.62 +0.18: Deutsche Securities upgraded Hold to BUY. Cites valuation, saying Thursday's 9% correction makes the stock's CY04 P/E of 16.6x attractive.

US Dataworks (UDW) 3.35 -0.18: U.S. Dataworks has seen its shares surge from $1.50 in June to $3.24 on 12/10 driven by the passing of Check 21, a new law allowing electronic check clearing. UDW makes software that lets banks transmit checks electronically and counts Citibank, Capital One, and some Federal Reserve banks among its users. Dataworks' counsel John Figone says that, of the estimated 42 billion checks written each year, Dataworks could handle 1.3 bln when Check 21 takes effect, on 10/28/04. Industry sources say Dataworks, which has links with Thomson Financial, charges $0.04-0.07 cents per check. Paul Sethi of Vertical Ventures Investments, which owns shares, sees Dataworks in the black in 2004, earning 10 cents a share on sales of $6 mln. In 2005, he sees 31 cents on $13 mln, and in 2006, 67 cents on $23 mln. Sethi sees the stock at 6 in a year.

__________________
"JJ Call me a 2'x4' again on the forum and your going to pay" Sportman.
Reply With Quote
  #4 (permalink)  
Old 12-15-2003, 09:54 AM
jjgold jjgold is offline
Five Star General
 
Join Date: Jan 2002
Posts: 45,795
Default

Telecom Equip
LM Ericsson (ERICY) 16.50 +0.24: Taiwan operator Far EasTone Telecom and its subsidiary Yuen-Ze have selected Co to continue as sole supplier for its 3G network. In this 3G expansion contract, Ericsson is delivering a fully integrated GSM-GPRS-WCDMA solution that ensures all Far EasTone's customers a seamless evolution from 2G to 3G. The expansion of the WCDMA system will start immediately and will be managed by co on a turnkey basis.

SONS seen as key vendor in AT&T service : Raymond James believes that Sonus (SONS 8.10 -0.05) is a key technology vendor in the AT&T consumer and business VOIP service announced yesterday. That said, firm maintains its Market Perform rating on the name citing issues such as recent data out of supplier Ulticom and a delayed RFP from Verizon.
UBS downgraded Ciena (CIEN 5.90 -0.28) to Reduce from Neutral and cut their target to $5.50 from $6.40 following weaker than expected Q1 guidance; firm does not expect the co to break even through at least FY06, and to generate the earnings power that is consistent with the stock's valuation, firm estimates that CIEN needs $200 mln in quarterly sales in 2005, compared to a current run-rate of $70 mln.


UTStarcom (UTSI) 38.45 +1.68: Co announced that more than 20 mln people have subscribed for PAS service in China through China Netcom and China Telecom on networks powered by UTStarcom technology. It is estimated that the total number of PAS subscribers in China has reached 32 mln. Reuters reports that the latest national figure for the wildly popular service, known as xiaolingtong or "little smart," has surpassed a previous forecast issued in Sep for 30 mln subscribers by year end. Confidence in Q4 increasing -- Oppenheimer (OPENX) 37.68 +0.91: Oppenheimer said confidence in the co's ability to meet or slightly exceed firm's Q4 EPS estimate of $0.51 is increasing; notes that in recent days, the First Call mean has moved to $0.51 from $0.50. Firm considers UTStarcom's (UTSI) shares undervalued; believes stock should trade at 25x 2004 est of $1.92, which results in a price tgt of $48.

Telecom Services
CellStar (CLST) 13.20 +0.20: Southwest Securities reiterated its Strong Buy rating and $21 target on CellStar (CLST). The strong showing in Chinese stocks bodes well for CellStar, which generates approx 50% of its business from China and plans on spinning off the Asia/Pacific division. The firm believes the stock allows investors to benefit from strong growth in China, which is not priced into the stock.

Commonwealth (CTCO) 36.95 -0.16: Loop Capital initiated coverage with an Outperform rating and $48 target; firm believes that the co remains relatively protected from the unpredictable regulatory environment in telecom due to its RLEC presence, and is less exposed to wireless and technology substitution than its larger wireline peers. Also, co looks to gain more "wallet-share" from its existing customer base as it expands bundling efforts, the co is an exceptional cash flow generator, and has one of the highest EBITDA margins in the industry.

SBC (SBC) 24.56 -0.24: Co announced that it is raising its annualized dividend to $1.25 from $1.13 (new yield 5.1%), and will buy back 350 mln common shares, representing about 10% of shares outstanding.
__________________
"JJ Call me a 2'x4' again on the forum and your going to pay" Sportman.
Reply With Quote
Reply


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -4. The time now is 09:31 PM.

Please be advised that if you are wagering over the internet, this is illegal in many jurisdictions. A wagering site may be operating legally at their location but it may still be illegal for you to wager from your location. We suggest you check on the legal situation from any jurisdiction in which you may wager.
 

Search Engine Optimization by vBSEO 3.0.0 RC6