|
CNNfn market movers
|
 |
February 22, 1999: 2:41 p.m. ET
E-brokers surge on E*Trade rumor, but jitters spark selling in Iridium, IDX
|
NEW YORK (CNNfn) - Natural gas suppliers and overseas telecom companies were among the beneficiaries of Wall Street's upturn Monday, as billion-dollar merger mania spread to peripherally-related companies.
Two major mergers in the natural gas industry, and signs of a third nearing consummation, led investors to speculate that other regional gas suppliers could be in line for acquisitions activity.
Outside the central merger players, Virginia-based Columbia Energy Group (CG) and Utah-based Questar (STR) were the early standouts of the sector's narrow rally. Columbia gained 1-5/16 to 49-3/8, while Questar climbed 5/16 to 17-9/16.
Elsewhere in the fossil fuels sector, Benton Oil & Gas (BNO) surged 1/2 to 2-11/16 and National Propane Partners (NPL) advanced 5/8 to 5-1/8.
Phones and Pinkerton's
Spain's telecommunications provider Telefonica de Espana (TEF) also got a sympathetic lift from merger activity, with American depositary receipts (ADRs) climbing 5-7/8 to 138-3/16 as the increasingly complex consolidation of the Italian telecom market gave traders hope of broader European linkups to come.
Telefonica de Espana has taken an increasingly alliance-friendly stance in recent months, having most recently spurned a tie-in with British Telecom (BTY) to pursue a similar deal with MCI Worldcom (WCOM).
ADRs of other global telecom players were more restrained, with only Dutch provider Royal PTT Netherlands (KPN), up 2-1/16 at 49-3/4, and Telefonos de Mexico (TMX), up 2-3/8 at 58-9/16, moving appreciably.
Among smaller deals, shares of legendary security company Pinkerton's (PKT) soared 11-11/16 to 28-9/16 after the company agreed to become a subsidiary of Sweden's Securitas for $384 million in stock.
Industrial auctioneer Ritchie Bros. (RBA) climbed 4-1/4 to 31-1/8 after announcing it will buy privately held Forke Auctioneers for an undisclosed sum.
Internet deal fails to inspire
Electronic retailer Beyond.com (BYND) lagged a rebound in the online sector, climbing only 1-3/4 to 26-1/2 after buying privately held competitor BuyDirect.
Despite the lackluster response to the Beyond.com deal, investors were much more receptive to news that Internet software provider Security First (SONE) had entered a strategic alliance with Hewlett Packard (HWP) and Anderson Consulting. Security First shares climbed 6-5/8 to 55.
Meanwhile, online stockbrokers resumed their recent rise, with Ameritrade (AMTD) up 11-5/8 at 97-5/8 and E*Trade (EGRP) up 7-3/8 at 47-1/2 on reports speculating that E*Trade could be angling for a buyout, perhaps with current ally Goldman Sachs.
Big fish in the electronic pond also climbed, with Charles Schwab (SCH) gaining 2-3/8 to 71-7/16 and comparative Net newcomer Merrill Lynch (MER) advancing 2-3/16 to 74-9/16.
Among the less well-known Internet discount brokers, 26-3/826-3/16, JB Oxford Holdings (JBOH) surged 2-1/8 to 10-1/8 and Siebert Financial (SIEB) leapt 4 to 28-1/16.
Mixed fundamentals
Tax preparer H&R Block (HRB) also saw the upside of merger mania, climbing 2 to 43-1/8 after surprising Wall Street with narrower operating losses and hints of a possible buyout to come.
Chipmaker Rambus (RMBS) continued its recent rally, climbing 11-13/16 to 82-13/16 Monday after BancBoston Robertson Stephens rated it a "buy" and set a near-term price target of $90.
Among the day's scattered losers, electronics manufacturer Marshall Industries (MI) tumbled 3-9/16 to 15-3/4 after warning shareholders that pricing pressures will prevent third-quarter profits from meeting expectations.
Analysts blamed a fall in IDX Systems (IDXC) shares, down 3-1/2 at 29-1/2, on worries about the company's preparations for the Year 2000 computer bug. Rival Healtheon (HLTH), fresh from its successful public stock offering, climbed 5/8 to 27-1/2 after announcing that it welcomes competition with IDX.
General jitters over flat demand drove shares of would-be satellite phone network developer Iridium World Communications (IRIDF) down 2-7/8 to 24-7/16. Analysts said the risk inherent in the mobile hand-held telecommunications market was unnerving investors, although both Lehman Brothers and C.E. Unterberg Towbin reiterated their "buy" ratings on the stock. 
|
|
|
|
|
 |
|
