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CNNfn market movers
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June 2, 1999: 2:39 p.m. ET
Hardee's operator down sharply after profit warning, while FirstSpartan rises
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NEW YORK (CNNfn) - Investors were doing some fast selling of their shares of a fast-food chain Wednesday afternoon, while shares in a South Carolina-based bank holding company rose sharply after the company announced a special cash payout to stockholders.
Stock in CKE Restaurants Inc. (CKR), operator of Hardee's and Carl's Jr. chains, fell 4-7/8 to 13-3/16 Wednesday afternoon after the company cut its first-quarter earnings forecast.
CKE said it expected to earn 35 cents to 37 cents per share because of lower-than-expected revenues. That compares with Wall Street expectations of about 45 cents per share, according to analysts polled by earnings tracker First Call Corp.
"We seem to be hitting a plateau for a while, as we integrate systems and remodel restaurants," said the company's CEO, William P. Foley II.
The ups and downs of CKE Restaurants stock over the past three months.
In banking, FirstSpartan Financial Corp. (FSPT) was trading up 4-1/4 at 33-1/4 after announcing it will distribute a special one-time cash payout of $12 per share. The Spartanburg, S.C.-based company said the move is part of an effort to better manage its capital.
Meanwhile, in the retail sector, investors were sizing up favorably Payless Shoesource (PSS), after Prudential analysts raised their rating on the discount shoe store chain's stock to a "strong buy" from an "accumulate." The stock was up 1-3/16 at 53-7/16.
Also, Children's Place Retail Stores (PLCE) was up 1-1/2 at 53-7/16 after the kids apparel chain got a boost from J.P. Morgan, which raised its rating to a "buy" from a "long-term buy."
But investors also listened to analysts' concerns about the stock of some big department store chains. Target Stores operator Dayton Hudson (DH) was down 2-1/16 at 61-15/16 while May Department Stores (MAY) was off slightly, down 5/8 at 42-5/16, after Credit Suisse First Boston cut its rating from a "buy" to a "hold" on both retailers.
In the Internet sector, last week's new offering StarMedia Networks (STRM) lost some of its star power Wednesday. Shares in the online Spanish- and Portuguese-language service were off 9-13/16 at 52-3/4 after rising as high as 66 in the company's debut week on Wall Street.
One of the high-tech sector's success stories Wednesday was software company Banyan Systems (BNYN), which was up 1-11/16 at 12-1/4. Earlier in the day, Banyan and CBS Corp. (CBS) announced a deal in which the broadcasting giant will spend $135 million for a 35 percent stake in Banyan's online business directory service Switchboard Inc. CBS hopes to boost its Internet presence through the deal.
Texas Instruments (TXN) gained 1-1/4 to 107-13/16 after announcing it will buy privately held telecommunications company Telogy Networks in a stock swap valued at about $435 million.
Among media stocks, shares of Metro Networks Inc. (MTNT) were down 5-7/8 at 49-5/8 early Wednesday afternoon as investors were apparently unimpressed by the radio and TV network's deal to be acquired by Westwood One (WON). Westwood One said Wednesday it is buying Metro Networks for about $900 million in stock. Based on Tuesday's closing price, that's $52.50 a share, below Metro's closing price of 55-1/2.
Also having a rough day was Keebler Foods (KBL) which was down 2-1/4 at 31-3/8 after Merrill Lynch cut its rating on the stock to a "long-term accumulate" from "long-term buy." Analysts say they expect competitive pressure on Keebler's higher margin brands in year 2000.
Performance of Keebler
over the past week.
Also powered upward Wednesday was Tokio Marine and Fire Insurance Co. (TKIOY) of Japan, after announcing it would join discount broker Charles Schwab Corp. in a new securities joint venture in Japan this fall. Tokio Marine shares were up 3-1/2 at 57-1/2 in New York.
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