|
CNNfn market movers
|
 |
May 20, 1999: 3:03 p.m. ET
Medicine tastes great to investors while telecom and Internet shares get the nod
|
NEW YORK (CNNfn) - Investors got a great taste of medicine Thursday after two companies involved in the medical business decided to merge. Telecom and Internet firms also got a friendly nudge from investors eager to partake in what these firms will develop in the future.
Healtheon Corp. (HLTH) shares soared 30-1/2, or more than 38 percent, to 110-3/4 after it confirmed a merger with privately held WebMD Inc. in a deal worth a reported $5.5 billion. The two companies operate Web sites that provide medical information to consumers and professionals. Software giant Microsoft (MSFT) and other major technology companies are taking stakes in the new entity totaling more than $360 million.
Also getting a kickstart from investors was Cardima Inc. (CRDM), whose shares jumped 9/16 to 2-5/16. The medical-device maker said its Tracer microcatheter was cleared by the U.S. Food and Drug Administration.
Echostar Communications (DISH) jumped 4-5/8 to 118 after the No. 2 satellite-television provider won Federal Communications Commission approval for its $1.46 billion purchase of satellite assets from News Corp. (NWS) and MCI WorldCom Inc. (WCOM). EchoStar said the added satellite capability will allow it to boost capacity to 500 channels.
And it wasn't just investors who benefited from their affiliation with Echostar. MBT International Inc. (MBTI) shares rose 27/32, or 34 percent, to 3-13/32 after announcing that it will provide EchoStar with multimedia content for its high-speed interactive broadcast service. MBT International builds Internet search engines.
Investors also were feeling bullish about Toro (TTC). Its shares jumped 2-3/8, or about 7 percent, to 35-1/8 after it announced that it expects earnings from continuing operations of $1.81 to $1.83 a share for the second quarter ended April 30. That's well above the consensus estimate of analysts surveyed by First Call, which was $1.73 a share.
The world's biggest maker of lawnmowers and snowblowers will report earnings on May 26.
Emulating success was Emulex Corp. (EMLX), whose stock surged 9-1/2 to 72-3/4 -- a 15 percent gain -- after it sold 2.1 million additional shares to the public at 61. Emulex makes computer networking equipment and software.
NewsEdge Corp. (NEWZ) rose 1-3/16 to 9-13/16 after the electronic news and information provider said it's teaming up with Microsoft on a project to integrate news into Microsoft's Exchange Server.
And information was certainly power for Tech Data Corp. (TECD) investors. The information services company's shares rose 4-1/2 to 38-15/16 after announcing it will become the chief information supplier for GE Capital Solutions, a unit of General Electric Co. (GE) The deal could be worth as much as $2 billion for Clearwater, Fla.-based Tech Data, which sells computer-related hardware and software products to value-added resellers and retailers.
On the flip side, Etec Systems Inc. (ETEC) fell 5-1/16, or about 14 percent, to 30-15/16. The chip-equipment maker said it expects to report a fiscal fourth-quarter loss and may incur losses through the fiscal first quarter. The First Call consensus was for earnings of 13 cents a share for the fourth quarter ending in July.
In equally poor form was ADAC Laboratories (ADAC), whose stock fell 1-11/32 to 8-7/32 after announcing it will delay filing its fiscal second-quarter financial results with the U.S. Securities and Exchange Commission. The company said it is evaluating the establishment of reserves and taking of charges -- actions which it believes will have an adverse effect on the quarter ended April 14. ADAC makes nuclear imaging equipment.
The dough was rolling in for ContiFinancial Corp. (CFN). Its stock rose for a second day, gaining 1-1/16 to 8-1/4 after announcing Wednesday that it tentatively agreed to be acquired by a finance unit of General Motors Corp. (GM) the world's biggest automaker. ContiFinancial is a mortgage and home-equity lender.
And it was a gusher for Devon Energy Corp. (DVN). Its shares rose 1-11/16, or around 5 percent, to 33-3/16 after it said it agreed to buy PennzEnergy Co. (PZE), which explores for oil and natural gas, for about $2.27 billion in stock and assumed debt. PennzEnergy holders will receive 0.4475 of a share, or about $14.10 based on Wednesday's stock prices. Each Devon share will be converted into a share of the combined company. Devon also will assume $1.59 billion of PennzEnergy debt. Devon is an oil exploration company.
Investors looking to dress up their holdings pushed American Eagle Outfitters Inc. (AEOS) up 1-7/8 to 39-7/8 after the casual-apparel retailer posted fiscal first-quarter earnings of 25 cents a share. It was expected to earn 21 cents, the average estimate of analysts polled by First Call Corp. Sales at stores open at least a year rose 27.5 percent.
|
|
|
|
|
 |
|
