Hot Stocks: Supercharge

August 13, 2001 Posted: 2019 GMT

NEW YORK (CNNfn) -- Chip stocks surged Monday after Goldman Sachs upgraded Intel to the recommended list in the semiconductor devices sector, and also upgraded Broadcom and Qualcomm to its recommended list in communications integrated circuits.

And shares of Cheap Tickets flew higher after Cendant agreed to buy the online discount air fare company in an all-cash deal worth $425 million.

But shares of CNF dipped after the company said its Emery Worldwide Airlines unit suspended air carrier operations as part of an interim agreement with the Federal Aviation Administration.

Intel (INTC: up $0.61 to $30.56, Research, Estimates); Conexant (CNXT: up $1.08 to $10.57, Research, Estimates); Broadcom (BRCM: up $2.82 to $45.37, Research, Estimates); Qualcomm (QCOM: up $2.83 to $66.60, Research, Estimates); Microtune (TUNE: up $1.96 to $20.30, Research, Estimates). Goldman Sachs added the chipmakers to its recommended lists from a "market outperform" rating.

RF Micro Devices (RFMD: up $1.37 to $28.89, Research, Estimates). The company, which makes chips for wireless technology, adopted a shareholder rights plan that can be triggered if a person or group acquires 15 percent or more of its common stock.

Analog Devices (ADI: up $1.54 to $48.99, Research, Estimates); Maxim Integrated Products (MXIM: up $3.00 to $51.19, Research, Estimates). Goldman Sachs added the chipmaker to the recommended list from a "hold" rating.

Linear Technology (LLTC: up $1.51 to $45.83, Research, Estimates). Goldman Sachs raised its rating on the chipmaker to "outperform" from "hold."

Cheap Tickets (CTIX: up $4.48 to $16.33, Research, Estimates). Hotel and real estate franchiser Cendant (CD: up $0.42 to $19.62, Research, Estimates) said Monday it will acquire the online seller of discount air fares and leisure products in a cash deal worth about $425 million.

John Wiley and Sons (JW.A: up $1.26 to $21.71, Research, Estimates). The educational publisher agreed to acquire Hungry Minds (HMIN: down $0.85 to $6.05, Research, Estimates), the publisher of "For Dummies" books, for $90 million.

Donaldson (DCI: up $1.22 to $31.22, Research, Estimates). The provider of filtration systems and replacement parts said Monday that it sees fourth-quarter earnings significantly exceeding expectations.

Johnson & Johnson (JNJ: up $0.68 to $55.70, Research, Estimates). The drugmaker signed an agreement with Zeltia to market the Spanish drug company's new cancer drug at a deal valued at more than $100 million.

Xerox (XRX: up $0.22 to $8.54, Research, Estimates). UBS Warburg upgraded the copier maker to "buy" from "hold" and set a $12 price target.

Peabody Energy (BTU: up $3.10 to $27.10, Research, Estimates). The coal company raised its earnings guidance for 2001 and 2002. It now expects income from continuing operations to rise 5-to-10 percent in 2001 and 40-to-50 percent in 2002. The guidance results from Peabody's decision to change to a calendar-year reporting basis.

Ivax Corp. (IVX: up $1.40 to $32.20, Research, Estimates). The pharmaceutical research firm said it entered into a multiyear agreement to supply its injectable Onxol brand anti-cancer drug to Novation, the largest hospital supply chain management company in the United States

Ciena (CIEN: up $0.97 to $30.99, Research, Estimates). UBS Warburg trimmed estimates on the communications equipment maker ahead of Thursday's earnings report. The firm reduced its 2001 earnings estimates by a penny to 72 cents per share and 2002 earnings estimates by 30 cents-to-80 cents a share, but maintained its "hold" rating.

Aviron (AVIR: up $2.51 to $29.15, Research, Estimates). SG Cowen said the recent selloff in response to a Food and Drug Administration advisory panel meeting is overdone and creates a buying opportunity. SG Cowen said the delay of Aviron's FluMist product is disappointing, but that the drug should prove to be a blockbuster product once it gets approved.

Immunex (IMNX: up $0.97 to $16.84, Research, Estimates).  The biotech company announced that it will team up with Wyeth-Ayerst, a division of American Home Products to sponsor a 10,000 patient rheumatoid arthritis study.

CNF (CNF: down $1.19 to $30.31, Research, Estimates). The company said its Emery Worldwide Airlines unit has suspended its air carrier operations as part of an interim agreement with the Federal Aviation Administration.

Hungry Minds (HMIN: down $0.85 to $6.05, Research, Estimates). The publisher of "For Dummies" books agreed to be acquired by educational publishing firm John Wiley and Sons (JW.A: up $1.26 to $21.71, Research, Estimates)  for about $90 million.

Pulte Homes (PHM: down $1.76 to $34.13, Research, Estimates). The U.S. Commerce Department said on Friday that it would impose a 19.3 percent tax on Canadian lumber and a negative article about the industry ran in Barron's over the weekend.

Ford Motor Co. (F: down $1.03 to $23.74, Research, Estimates). UBS Warburg cut the company to "reduce" from "hold" after the automaker, in a deal that could cost it as much as $1 billion and affect millions of vehicles, agreed to settle a lawsuit that alleges its cars and trucks stall.

Accenture (ACN: down $0.18 to $15.01, Research, Estimates). Lehman Brothers initiated coverage of the company with a "buy" rating and 12-month price target of $21. The global consulting firm completed its IPO last month at $14.50 a share.

Rohn Industries (ROHN: down $2.25 to $3.60, Research, Estimates). The maker of wireless equipment said its 2001 revenue and earnings would be "significantly lower" than the company previously forecast.

Western Resources (WR: down $0.86 to $17.24, Research, Estimates). The company discontinued talks with Public Service Company of New Mexico (PNM: up $0.10 to $29.29, Research, Estimates) about possible modifications to their proposed transaction and that the parties are in disagreement about the future of the transaction.

AOL Time Warner (AOL: down $1.31 to $42.99, Research, Estimates). News reports speculating that the media giant will be cutting jobs at its Internet unit as the company tries to ensure it will meet its 2001 financial targets. AOL Time Warner is the parent of CNNfn.

-- compiled by Catherine Tymkiw from staff and wire reports

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