Rainbow Media Deal Prompts Upgrade

Bear Stearns upgraded Rainbow Media (RMG ) to buy from attractive. On Thursday Rainbow inked a pact to expand the distribution of its Women's Entertainment network to 10M Time Warner Cable homes.

UBS Warburg downgraded Dell Computer (DELL ) to buy from strong buy.

CS First Boston cut its estimates on EMC Corp. (EMC ). The company was unavailable for comment.

Tucker Anthony downgraded Novellus Systems (NVLS ), Applied Materials (AMAT ) and Lam Resh Corp. (LRCX ) to underperform from market perform. Tucker also downgraded Nanometrics (NANO ) to market perform from buy.

Magna International (MGA ) posted better than expected $1.57 vs. $1.57 Q1 EPS on slight sales rise. Magna sees $1.20-$.140 Q2 EPS and $4.90-$5.40 2001 EPS. S&P upgraded to hold from sell.

Macromedia (MACR ) posted $0.15 vs. $0.30 Q4 EPS (pro forma) despite a 3% revenue rise. The company says the economic climate has significantly reduced visibility; therefore, it will not provide near term guidance. Tucker Anthony downgraded. S&P maintains hold.

Lone Star Technology (LSS ) and a significant holder announced the sale of one million and 500,000 Lone Star shares, respectively.

EchoStar Communications (DISH ) posted a $0.35 Q1 loss vs. a $0.40 loss on a 52% revenue rise. S&P upgraded to accumulate from hold.

PacifiCare (PHSY ) posted $0.39 vs. $2.04 Q1 EPS as rising health care costs in commercial and Medicare lines offset a 7% revenue rise. S&P maintains hold. Bear Stearns maintains neutral.

Asyst Technology (ASYT ) posted $0.05 vs. $0.34 Q4 EPS from operations as narrowed gross margin offsets a 21% sales rise. Asyst sees a Q1 loss from operations on about $75M revenues. Tucker Anthony downgraded and cut estimates.

Hotjobs.com (HOTJ ) posted a $0.16 Q1 loss vs. a $0.38 loss from operations on a sharp revenue rise. Hotjobs boosted its operating profitability goal to Q3 from Q4.

Biomira (BIOM ), Merck and KGaA entered a global product development and co-promotion pact for Biomera's two most advanced therapies treating breast and lung cancer.

ACT Manufacturing (ACTM ) posted $0.49 vs. $0.36 1Q EPS (adjusted) on 94% revenue rise. Needham downgraded to hold from buy. CS First Boston cut estimates.

Fleetwood Enterprise (FLE ) says significantly reduced sales of recreational vehicles and manufactured housing generated fiscal 2001 revs of $2.53B, a 33% decline, and Q4 revenues of $545M, a 40% decline.

Newell Rubbermaid (NWL ) posted $0.18 vs. $0.28 Q1 EPS on slightly lower sales. The firm lowered its Q2 EPS guidance to $0.37-$0.42 and cut its 2001 EPS to $1.50-$1.65. S&P maintains hold.

Morgan Stanley downgraded Guidant Corp. (GDT ) to neutral from outperform. Wednesday Guidant announced Contak CD slows heart failure.

Prudential upgraded Convergys Corp. (CVG ) to strong buy from accumulate.

Philip Morris (MO ) says its wholly owned unit Kraft Foods Inc. filed an amended registration statement with the SEC relating to the IPO of 280M class A shares, plus over-allotment. IPO price currently is estimated at $26-$31 per share.

Compuware (CPWR ) posted $0.16 vs. $0.15 Q4 EPS from operations as widened operating margin offset a 12% revenue decline. S&P maintains hold. Prudential cut estimates and the price target.

Lehman downgraded Handspring (HAND ) to buy from strong buy.

Banc of America downgraded Applebee's (APPB ) to buy from strong buy.

CS First Boston believes EMC Corp. (EMC ) is facing accelerating price pressures from traditional server players, and cut estimates.

AON Corp. (AOC ) posted $0.23 vs. $0.44 Q1 EPS from operations on flat consolidated revenue.

Cirrus Logic (CRUS ) posted $0.24 vs. $0.05 Q4 EPS (pro forma, excluding a charge) on a 25% revenue rise and sees $0.10-$0.15 Q1 EPS (pro forma). Salomon upgraded to buy. S&P maintains hold.

Osi Pharm (OSIP ) posted $0.04 Q2 EPS vs. a $0.21 loss on 24% revenue rise.

Vitesse Semiconductor (VTSS ) will cut its workforce by about 12%, citing a slowdown in customer demand. Vitesse will take a related Q3 charge of $1.5-$2 million. Dain Rauscher downgraded to neutral from buy.

Landry's Seafood (LNY ) posted $0.17 vs. $0.12 Q1 EPS on 59% revenue rise.

Robertson Stephens downgraded Pacific Sunwear (PSUN ) to long term attractive from buy.

Sun International Hotels (SIH ) posted $1.20 vs. $0.97 Q1 EPS from operations (pro forma) on 17% revenue drop (revenue drop due to sale of Resorts Atlantic City).

Orbotech (ORBK ) posted $0.65 vs. $0.50 Q1 EPS on a 27% revenue rise.

Cobra Electronics (COBR ) terminated its tender offer for all shares of Lowrance Electronics (LEIX ). Cobra cited, among other things, a material adverse change in Lowrance's net sales and EPS relative to financial projections provided to Cobra.

Pharmacopeia Inc. (PCOP ) posted $0.10 Q1 loss vs. $0.05 EPS (pro forma) despite a 13% revenue rise. The company notes Drug Discovery revenue declined 40%. Pharmacopeia cut its $0.80 2001 EPS estimate to $0.70.

Caminus Corp. (CAMZ ) posted $0.08 vs. $0.05 Q1 EPS (pro forma) on 92% revenue rise.

Celeritek (CLTK ) posted a $0.39 Q4 loss vs. $0.01 EPS from operations as higher cost of goods sold offset a 16% sales rise. The company sees revenue per quarter of $14-$15 million for fiscal 2002. It plans to cut its workforce by 30%.

IBM Corp. (IBM ) reported discovering a new process for manufacturing computer displays that can vastly improve screen quality and viewing angles, while saving manufacturers millions of dollars.

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