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Friday's hot stocks
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March 31, 2000: 4:07 p.m. ET
Net2Phone shares jump; Kronos falls on 2Q warning; Intel gains momentum
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NEW YORK (CNNfn) - Shares of Net2Phone Inc., an Internet telephone services provider, rose almost 10 percent after news of deals with AT&T and Internet search engine Yahoo!
Shares of Kronos Inc., a maker of labor management software, fell 32 percent after the company warned that its second-quarter revenue and earnings will fall short of analysts' expectations.
Shares of online health network, Drkoop.com, plunged 42 percent after the company said that auditors are questioning its ability to continue operating.
Here are some of the biggest market movers in Friday trading:
Friday's winners
ArrowPoint Communications Inc. (ARPT: Research, Estimates) up 91 to 125.
ArrowPoint Communications shares shot up 256 percent after the company's initial public offering debuted on Nasdaq. ArrowPoint, which makes switches that route Web content requests to network servers, offered five million shares at $34 each, above a dramatically raised price range, through lead underwriter Goldman Sachs.
Net2Phone Inc. (NTOP: Research, Estimates) up 5-1/8 to 60-1/2.
A consortium led by top U.S. long-distance telephone carrier AT&T Corp. said it will make a $1.4 billion cash investment in Internet telephone services provider Net2Phone.
Separately, Net2Phone said it sold a minority stake to Internet search engine Yahoo! Inc. through a stock swap valued at $150 million.
Hartford Financial Services (HIG: Research, Estimates) up 6-7/8 to 53-1/4.
Hartford Financial Services offered $1.1 billion to buy the 18.5 percent of life insurer Hartford Life it doesn't already own earlier this week, but is likely to increase its offer after Hartford Life shares jumped beyond the offer price. Hartford Financial is the ninth largest property-casualty insurer in the United States.
Intel Corp. (INTC: Research, Estimates) up 7-49/64 to 134-49/64.
After Thursday's markets closed, semiconductor leader Intel said the Internal Revenue Service finished reviewing its tax returns through 1998 and will reverse some $600 million of Intel's previously accrued taxes. That will result in a first-quarter one-time gain of 17 cents per share. Intel's stock was 1 percent higher in after-hours trading Thursday evening.
HotJobs.com (HOTJ: Research, Estimates) up 1-7/32 to 26-3/8.
Online recruitment service HotJobs.com said its first-quarter revenue should come in 10 percent higher than analysts' expectations of $9.9 million. The company said its per-share results could be minimally better than the 44-cent loss that is expected.
Policy Management Systems Corp. (PMS: Research, Estimates) up 3-7/16 to 12-3/16.
Financial sector software provider Policy Management Systems reported a steep fourth-quarter loss and said it agreed with an investment firm to recapitalize the company and to conduct business under the name Mynd. The agreement, approved by PMSC's board, was reached with an affiliate of Welsh Carson Anderson & Stowe, a New York-based private investment firm. The firm has committed to provide up to $604 million in capital, including $75 million for investments in new strategic initiatives and other general corporate purposes.
Infonet Services Corp. (IN: Research, Estimates) up 1-5/16 to 23-11/16.
Lehman Brothers analyst Dan Fletcher raised his price target on data communications company Infonet Services to $41 a share from $37.
The price target hike is based on the company's five-year pact with Deutsche Telekom, which is expected to add $1 billion to Infonet's revenue over five years.
Friday's losers
Drkoop.com (KOOP: Research, Estimates) down 2-5/8 to 3-5/8.
Shares of Drkoop.com tumbled after the online health network said in its annual report filed with the SEC that independent auditors are questioning its ability to continue operating.
The company said in the 10K filing: "We have received a report from our independent auditors for our fiscal year ended Dec. 31, 1999, containing an explanatory paragraph that describes the uncertainty as to our ability to continue as a going concern due to our historical negative cash flow and because, as of the date they rendered their opinion, we did not have access to sufficient committed capital to meet our projected operating needs for at least the next twelve months."
Kronos Inc. (KRON: Research, Estimates) down 12-7/8 to 28-3/4.
Kronos, a maker of labor management software, warned that due to lingering effects of the Y2K spending slowdown, its second-quarter revenue and earnings will fall short of analysts' expectations. Kronos said it expects second-quarter earnings of 13 to 15 cents per share, far below the 46 cents Wall Street had expected.
Global Crossing Ltd. (GBLX: Research, Estimates) down 3-3/16 to 40-1/8.
Telecommunications company Global Crossing Ltd. detailed its plans to raise about $2 billion through the sale of common and preferred stock to fund its business expansion plans for the year.
E.spire Communications (ESPI: Research, Estimates) down 3-7/32 to 6-15/32.
Telecommunications service provider E.spire Communications said it failed to meet certain covenants of its $200 million credit agreement. The company also said it expects negative cash flow of about $35 million in its fourth quarter, and it hired investment bank Morgan Stanley to help explore strategic options. The stock fell more than 33 percent in Friday afternoon trading.
Conseco Inc. (CNC: Research, Estimates) down 2-1/2 to 11-3/16.
Insurance and financial services company Conseco said it plans to sell its consumer finance subsidiary, Conseco Finance Corp., and will take a non-cash, after-tax charge of about $350 million against 1999 results.
Interstate Bakeries Corp. (IBC: Research, Estimates) down 2-13/16 to 13-3/4.
Interstate Bakeries, the maker of Hostess Twinkies and Wonder Bread, reported fiscal third-quarter profit that was lower than expected, citing higher labor and fuel costs. The largest U.S. baker said it earned $20.4 million, or 30 cents per share, for its fiscal third quarter ended March 4, down from its year-ago figures of $29.6 million, or 41 cents. 
--Compiled from wire reports by Staff Writer Lucy Banduci
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