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Get Four
|  | DECEMBER 30, 2003 04:18 PM
 MARKET MOVERS Rambus Soars on Micron Plea Deal Report Trinity Biotech jumps; United Auto rises; FedEx to acquire Kinko's; plus more of today's stocks in the news DRAM chip maker Rambus (RMBS ) rose on a report that the Department of Justice cut a deal with rival Micron Technology (MU ), the world's No. 2 maker of computer memory chips. As part of an agreement to avoid prosecution, Micron may admit to conspiring with competitors to set chip prices, according to Bloomberg. Micron might also provide information about the three other companies being investigated, including Infineon Technologies (IFX ), Samsung Electronics, and Hynix Semiconductor. Rambus has sued the other companies for patent infringement and is seeking royalties that could amount to billions of dollars. American Technology Research kept its buy rating on Rambus. Trinity Biotech (TRIB ) shares rose further. On Monday the Ireland-based company received approval from the FDA to market its Uni-Gold Recombigen HIV test in the U.S. Bear Stearns upgraded United Auto Group (UAG ) to outperform from peer perform, citing the auto retailer's more promising earnings per share outlook. Shares advanced. Package-delivery giant FedEx (FDX ) jumped after it agreed to acquire the privately held Kinko's copy center chain for $2.4 billion. FedEx anticipates the deal won't have a material impact on fiscal 2004 results, but that it will be accretive to earnings in fiscal 2005. The deal is expected to close in the first calendar quarter of 2004. InteliStaf will acquire RehabCare 's (RHB ) StarMed Staffing Group unit in a stock for stock deal. RehabCare sees a $30 million to $35 million charge to reflect a write-down of the carrying value of StarMed and related costs. Intrado (TRDO ) rose. The 9-1-1 data-management services company will be added to the S&P SmallCap 600 after the close of trading Dec. 30, replacing FootStar, which has been suspended from trading on the New York Stock Exchange. FootStar now trades on the over-the-counter bulletin board under the symbol "FTST." Chromavision Medical (MED ) says the FDA cleared for marketing its ACIS system, which is the first imaging device cleared to detect, count, and classify the presence of HER2 protein. Stratasys (SSYS ) secured a $1.5 million order from its Tokyo-based distributor, Marubeni Solutions Corp. Stratasys notes this marks the largest single order in its history. Cotton States Life Insurance (CSLI ) and Country Insurance & Financial Services of Bloomington, Ill., are in a deal implementing a prior agreement regarding the acquisition of Cotton States. The terms are $20.25 cash for each Cotton States share. Biosite (BSTE ) received FDA clearance to market its Triage B-type natriuretic peptide (BNP) Test for Beckman Coulter Immunoassay Systems, a diagnostic test that measures BNP. Bear Stearns reiterated its outperform rating on Forward Air (FWRD ), and has a $35 2004 year-end target. Symbol Technologies (SBL ) CEO and chairman Richard Bravman resigned. The company completed the restatement of its 1998-01 financial results, as well as result for the first three quarters of 2002, with the reversal of cumulative net revenue of $234.2 million, and cumulative net earnings of $324.7 million. Also, Symbol says it will take a $98.3 million pre-tax charge in 2002. Boeing (BA ) received an $8.6 billion multiyear contract from the U.S. Navy for an additional 210 F/A-18 Super Hornets, and a seperate $1 billion contract to create the EA-18G, a new electronics warfare version of the jet that can attack enemy radar. S&P reiterated its buy ranking. Micromuse (MUSE ), a telecommunications software maker, says it will delay filing a fiscal 2003 10-K pending completion of an internal inquiry. As a result, the company sees a restatement of the past four years. Micromuse also revised the first-quarter outlook and now expects revenue at the high end, or slightly above, its previous guidance of $34 million to $35 million. However, earnings will be impacted by fees of about $2 million related to the accounting inquiry, making previous forecasts unreliable. Target (TGT ) reportedly says same-store sales for the week ended Dec. 27 were running above plan, but at the lower end of its expectations for all of December. Johnson Outdoors (JOUT ) received a $42.9 million military tent order, scheduled for delivery over the next 15 months. JP Morgan upgraded Charter One Financial (CF ) to overweight from neutral. Cholestech (CTEC ) is in a settlement with Roche Diagnostics on patent infringement. Cholestech will make a $7 million payment to Roche; Roche will grant an irrevocable, non-exclusive, worldwide license to Cholestech for its patents related to HDL cholesterol. Pfizer (PFE ) says federal courts have ruled in Pfizer's favor in two recent challenges to its patents for Vantin and Zoloft. Eon Labs (ELAB ) says the U.S. District Court for the Southern District of New York replaced a temporary restraining order with a preliminary injunction related to the introduction of Eon's Bupropion HCl, ER 100mg tablets until further order of the court.  All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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