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Thursday's hot stocks
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January 20, 2000: 2:05 p.m. ET
Relm, General Cigar soar on news of alliances; Sunterra down on warning
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NEW YORK (CNNfn) - A wireless firm and a cigar manufacturer saw their shares skyrocket after announcing new alliances Thursday, but an earnings warning sent a resort operator's shares plunging.
Relm Wireless Corp. (RELM) gained 149 percent after announcing an alliance with Hitachi Denshi of Tokyo, in which the companies will jointly develop wireless communications products.
Relm designs and manufactures wireless communications products.
West Melbourne, Fla.-based Relm advanced 4-9/16 to 7-5/8.
General Cigar Holdings, Inc. (MPP) soared 61 percent after the Swedish tobacco firm Swedish Match agreed to acquire a 64% stake in the U.S. cigar company for 15.25 a share.
New York, NY-based General Cigar rose 5-7/16 to 14-3/8.
But, Sunterra Corp. (OWN) sank 36 percent after issuing an earnings warning. The international resort operator expects fourth-quarter profits to be between 1 cent and 8 cents per share, far below analysts' estimates of 31 cents. The company cited unspecified adverse factors.
Orlando, Fla.-based Sunterra fell 2-1/4 to 3-15/16.
In other earnings news, Legato Systems Inc. (LGTO) plummeted 44 percent after posting fourth-quarter earnings of 3 cents a share compared with 8 cents in the year-earlier period. Earnings tracker First Call forecast 19 cents.
Legato, which develops network-software products, was the most actively traded stock on the Nasdaq. Following the earnings report, several Wall Street brokerage firms downgraded the stock. Banc of America Securities lowered its rating to "market perform" from "buy," and SG Cowen to "neutral" from "strong buy."
Palo Alto, Calif.-based Legato declined 23-5/8 to 30.
Also on the skids was VISX Inc. (VISX), plunging 31 percent following several downgrades. Goldman Sachs also lowered the company's 2000 earnings estimate to $1.60 from $1.75.
The world's No. 1 maker of laser vision-correction systems posted net income of 38 cents per share in the fourth quarter, in line with expectations.
Santa Clara, Calif.-based VISX eased 14 to 31-3/8.
Engage Technologies Inc. (ENGA) jumped 24 percent. The Andover, Mass.-based business research firm said it will acquire Flycast Communications Corp. and ADSmart Inc. from Internet venture capital firm CMGI Inc. (CMGI) for $32 million.
Engage rose 18-3/8 to 95-3/8, while CMGI, also based in Andover, slipped 1-5/16 to 121-1/16.
Another top Nasdaq performer was Vivus Inc. (VVUS), which gained 25 percent. The company, which develops medications for male sexual dysfunction, expects fourth-quarter earnings between 40 and 42 cents per share, well above analysts' forecasts of 5 cents.
Mountain View, Calif.-based Vivus advanced 1-7/32 to 6-1/16.
Convergent Communications Inc. (CONV) tumbled 21 percent after it issued an earnings warning. The Internet provider made preliminary estimates for fourth-quarter revenue of $48 million to $50 million, below analysts' expectations.
On the heels of the warning, J.P. Morgan Securities cut the stock's rating to "market perform" from "buy."
Engelwood, Colo.-based Convergent retreated 2-5/8 to 10-1/8. 
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