en hatten
FRIDAY , APRIL 25, 2003 01:15 PM
City of Industry, CA, Apr 25, 2003 (financialnewsusa.com via COMTEX) -- CNBC
reports that the 24 million-share transaction that took place in AOL (NYSE: AOL)
shares this morning is part of a hedge. Speculation is that a major AOL
shareholder may be trying to take advantage of recent rebound in price without
having to sell the stock.
Sonoran Energy, Inc. (OTCBB: SNRN) recently announced that it has joined the
Independent Petroleum Association of America. IPAA (www.ipaa.org)
represents the thousands of independent oil and natural gas producers and
service companies like Sonoran across the United States. CEO, John Punzo stated,
"Sonoran's membership in IPAA is an entree to being recognized as a promising
junior oil and gas producer. IPAA has represented independent oil and natural
gas producers for three-quarters of a century which now account for drilling 85
percent of wells in the United States, produce 65 percent of the country's
natural gas, and produce 40 percent of the oil; 60 percent in the Lower-48
states."
Best Buy (NYSE: BBY) lower on downgrade, margin concerns. Stock trading lower in
reaction to a Raymond James downgrade (to Market Perform from Strong Buy) based
on valuation. Also weighing on issue is Midwest Research quarterly pricing
analysis indicating that BBY has been cutting prices within the Video and
Computer categories during the past several months in order to stimulate demand.
Firm believes that deteriorating average selling prices will dampen earnings
prospects at BBY during the next several qtrs.
VeriSign (NASDAQ: VRSN) upped to Buy at A.G. Edwards; target $15 10.57 +0.44.
The upgrade from Hold is based on improvements in the balance sheet and firming
underlying fundamentals.
IDEC Pharmaceuticals (NASDAQ: IDPH) downgraded at SG Cowen. SG Cowen downgrades
to Market Perform from Outperform, saying checks into Rituxan inventory
indicates weakness in Q1 sales which cannot be explained by wholesaler
destocking; this, combined with anemic end user demand trends, reduces their
confidence in the drug's near-term growth potential.
Altria (NYSE: MO) to appeal in Illinois case. Philip Morris USA announced last
night that it will seek review of the $10.1 billion verdict in the Price class
action lawsuit by Illinois appellate courts in light of Madison County Circuit
Judge Nicholas Byron's decision yesterday to affirm his earlier verdict in the
case. "Philip Morris USA believes that when an appellate court reviews the
record in this case and applies Illinois law, it will conclude this verdict must
be overturned."
Aetna (NYSE: AET) upgraded at SG Cowen. SG Cowen upgrades to Outperform from
Market Perform, saying Q1 results provide evidence of a successful turnaround;
despite their view that 2003 should be an inflection point for HMO stocks, firm
believes AET can widen the spread between pricing and cost trends, and SG&A
improvement should drive further margin ramp; raises 2003 estimated to $4.25
from $3.30 and 2004 to $5.25 from $3.65 (both well above consensus).
3M (NYSE: MMM) Company cut to Neutral at BofA 125.72. Banc of America downgrades
to Neutral from Buy based on valuation; also, firm foresees a rotation out of
defensive names into deeper cyclicals, and recommends switching into APD; cuts
price target to $138 from $155, trims 2003-04 estimates slightly below
consensus, and lowers EPS growth rate estimated to 12% from management's goal of
13%.
Emulex (NYSE: ELX) cut to Underperform at Thomas Weisel. The downgrade from Peer
Perform is based on the expectation of slowing revenue growth. Firm's thesis
that exhaustion of HBA market share gains will lead to moderating growth is
beginning to playout, as evidenced by Emulex's results and guidance. Firm's DCF
analysis values ELX at $17 per share.
Black & Decker (NYSE: BDK) upgraded at Smith Barney 38.61. Smith Barney upgrades
to In-Line from Underperform, saying the company's restructuring and
cost-cutting are providing traction in a difficult environment and show a clear
path to earnings growth later this year, and as a result, firm no longer expects
the stock to underperform the sector in 2H03; raises target to $50 from $46.
About Financial News USA
Financial News USA is a next generation financial news network that provides
news coverage to OTC Bulleting Board companies through its proprietary wire
service, OTCBBWire. Call or visit us today to find out how Financial News USA
can help enhance the awareness of your company's news to the global financial
community.
FRIDAY , APRIL 25, 2003 01:15 PM
City of Industry, CA, Apr 25, 2003 (financialnewsusa.com via COMTEX) -- CNBC
reports that the 24 million-share transaction that took place in AOL (NYSE: AOL)
shares this morning is part of a hedge. Speculation is that a major AOL
shareholder may be trying to take advantage of recent rebound in price without
having to sell the stock.
Sonoran Energy, Inc. (OTCBB: SNRN) recently announced that it has joined the
Independent Petroleum Association of America. IPAA (www.ipaa.org)
represents the thousands of independent oil and natural gas producers and
service companies like Sonoran across the United States. CEO, John Punzo stated,
"Sonoran's membership in IPAA is an entree to being recognized as a promising
junior oil and gas producer. IPAA has represented independent oil and natural
gas producers for three-quarters of a century which now account for drilling 85
percent of wells in the United States, produce 65 percent of the country's
natural gas, and produce 40 percent of the oil; 60 percent in the Lower-48
states."
Best Buy (NYSE: BBY) lower on downgrade, margin concerns. Stock trading lower in
reaction to a Raymond James downgrade (to Market Perform from Strong Buy) based
on valuation. Also weighing on issue is Midwest Research quarterly pricing
analysis indicating that BBY has been cutting prices within the Video and
Computer categories during the past several months in order to stimulate demand.
Firm believes that deteriorating average selling prices will dampen earnings
prospects at BBY during the next several qtrs.
VeriSign (NASDAQ: VRSN) upped to Buy at A.G. Edwards; target $15 10.57 +0.44.
The upgrade from Hold is based on improvements in the balance sheet and firming
underlying fundamentals.
IDEC Pharmaceuticals (NASDAQ: IDPH) downgraded at SG Cowen. SG Cowen downgrades
to Market Perform from Outperform, saying checks into Rituxan inventory
indicates weakness in Q1 sales which cannot be explained by wholesaler
destocking; this, combined with anemic end user demand trends, reduces their
confidence in the drug's near-term growth potential.
Altria (NYSE: MO) to appeal in Illinois case. Philip Morris USA announced last
night that it will seek review of the $10.1 billion verdict in the Price class
action lawsuit by Illinois appellate courts in light of Madison County Circuit
Judge Nicholas Byron's decision yesterday to affirm his earlier verdict in the
case. "Philip Morris USA believes that when an appellate court reviews the
record in this case and applies Illinois law, it will conclude this verdict must
be overturned."
Aetna (NYSE: AET) upgraded at SG Cowen. SG Cowen upgrades to Outperform from
Market Perform, saying Q1 results provide evidence of a successful turnaround;
despite their view that 2003 should be an inflection point for HMO stocks, firm
believes AET can widen the spread between pricing and cost trends, and SG&A
improvement should drive further margin ramp; raises 2003 estimated to $4.25
from $3.30 and 2004 to $5.25 from $3.65 (both well above consensus).
3M (NYSE: MMM) Company cut to Neutral at BofA 125.72. Banc of America downgrades
to Neutral from Buy based on valuation; also, firm foresees a rotation out of
defensive names into deeper cyclicals, and recommends switching into APD; cuts
price target to $138 from $155, trims 2003-04 estimates slightly below
consensus, and lowers EPS growth rate estimated to 12% from management's goal of
13%.
Emulex (NYSE: ELX) cut to Underperform at Thomas Weisel. The downgrade from Peer
Perform is based on the expectation of slowing revenue growth. Firm's thesis
that exhaustion of HBA market share gains will lead to moderating growth is
beginning to playout, as evidenced by Emulex's results and guidance. Firm's DCF
analysis values ELX at $17 per share.
Black & Decker (NYSE: BDK) upgraded at Smith Barney 38.61. Smith Barney upgrades
to In-Line from Underperform, saying the company's restructuring and
cost-cutting are providing traction in a difficult environment and show a clear
path to earnings growth later this year, and as a result, firm no longer expects
the stock to underperform the sector in 2H03; raises target to $50 from $46.
About Financial News USA
Financial News USA is a next generation financial news network that provides
news coverage to OTC Bulleting Board companies through its proprietary wire
service, OTCBBWire. Call or visit us today to find out how Financial News USA
can help enhance the awareness of your company's news to the global financial
community.
