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by 9/28/2000 8:46 AM
Stocks quoted in this article:
Investors body slammed World Wrestling Federation (WWFE 19-3/4) in extended trading yesterday. The company lowered earnings views for its fiscal year 2001, which ends April 30. Investors dropped the stock to the mat, sending it as low as 12-3/4. WWFE said that fiscal revenue from its core business would be three percent below prior estimates and that EBITDA (earnings before interest, taxes, depreciation, and amortization) would fall eight to 10 percent below prior expectations.

The company launched it initial public offering (IPO) in October with 10 million shares priced at 17. The lock-up period ended in April. Recent trading has seen the stock turned away at the 22-1/2 level with potential chart support around 18-1/2. Traders can also look for potential support on a closing basis around 12-1/2 to 13. A break below these levels would bode poorly for the shares.

All five analysts covering WWFE rate the equity a "buy" or better.

With the stock's average daily volume a little over 64,000 shares, options investors have shied away from the stock. Current total open interest in options with up to three month's of life is just 818 contracts (744 calls versus 74 puts). <
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by 9/27/2000 3:04 PM
Stocks quoted in this article:
The Morgan Stanley High Tech 35 Index (MSH 949.84) has declined by nearly 27 points, or more than two percent, in late-afternoon trading. This slippage has the index ready to tally its fifth consecutive losing session and close at its lowest mark since May 31.

The MSH has lost almost 16 percent of its value since its September 1 intraday high under the pressure of its downsloping 10-day moving average. The index is now beneath its 10-month moving average, a trendline that has offered flawless support on a monthly closing basis since August 1998.

Key components leading the MSH lower include Electronic Arts (ERTS 43-5/8), down 14.6 percent; JDS Uniphase (JDSU 95-1/2), down 7.3 percent; Nortel Networks (NT 59-3/4), down 6.6 percent; Broadcom (BRCM 242-11/16), down 5.5 percent; Tellabs (TLAB 45-7/16), down 4.8 percent; Dell Computer (DELL 32), down 4.8 percent; and Motorola (MOT 28-3/8), down 4.2 percent.


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by 9/27/2000 1:14 PM
Stocks quoted in this article:
Nordstrom (JWN 15-3/16) operates upscale department stores throughout the United States. Today, the firm announced plans to acquire Faconnable S.A., an apparel manufacturer based in Nice, France. The retailer will dole out $88 million plus five million JWN shares in the transaction. The purchase will impact JWN's bottom line one to three cents per share in 2000, seven to nine cents per share in 2001, and by two to four cents per share in 2002.

JWN opened lower this morning and reached a new seven-year low of 14-5/8. The equity has since pared its losses and is trading fractionally higher in early-afternoon activity.
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by 9/27/2000 1:14 PM
Stocks quoted in this article:
FleetBoston Financial (FBF 38) became the eighth-largest American bank after the marriage of the two largest banks in New England. The firm presently operates around 1,250 northeastern U.S. locations, and this number is poised to grow. Today, it was announced that FBF is in discussions to acquire Summit Bancorp (SUB 33-5/8), which runs over 500 locations in Pennsylvania, New Jersey, and Connecticut.

Terms have not been disclosed, but SUB presently has a market cap of 4.5 billion. Reports stated that SUB may also be in talks with other suitors, so this potential deal with FBF is far from finalized.

FBF is trading slightly lower today, while SUB has surged just under 10 percent. Yesterday, SUB shares added just over 10 percent to their value. <
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by 9/27/2000 1:13 PM
Stocks quoted in this article:
Rite-Aid (RAD 3-5/8) is among the largest pharmaceutical retailers in the United States. RAD has been under severe technical pressures for the past two years, sinking sharply from a January 1999 peak of 51-1/8 to its current position in single-digit territory.

Today, however, the shares are getting a much-needed boost, tacking on 16 percent and hurdling past their 10-day moving average. This rally came to pass when an analyst at Donaldson, Lufkin & Jenrette boosted his rating on the shares from an "underperform" to a "market perform." The analyst also said that while RAD's long-term outlook remains "uncertain," its short-term outlook is reaching a plateau, and the stock should not weather any more selling pressure in the near future. <
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