Still Hold Broadvision

Also: analysts' opinions on E*Trade and Corning

Broadvision (BVSN ): Maintains 3 STARS (hold)

Analyst: Scott Kessler

Broadvision is being dropped from the S&P 500 on Friday because of lack of representation. Broadvision has experienced financial travails since the dot-com shake-out began in March 2000. But even with recent losses, the company had $186.3 million ($0.68 per share) in cash, equivalents and investments as of June 2001. S&P believes the company will be able to weather a downturn in tech spending until its regains pro forma profitability, which S&P forecasts will occur in Q2 2002.

E*Trade (ET ): Reiterates 3 STARS (hold)

Analyst: R. McMillan

The online broker agreed to acquire specialist and market making firm Dempsey & Company for $173.5 million in cash and stock. The deal will be immediately accretive and E*Trade expects $0.05-$0.07 in added EPS in 2002. The company also plans to restructure and consolidate facilities in order to maximize efficiencies, which will result in a $220-$245 million charge this quarter. S&P is reviewing its estimates. S&P lauds E*Trade's efforts to diversify its revenue and profit streams and to rationalize operations, but would not add to positions in this weak online trading environment.

Corning (GLW ): Reiterates 3 STARS (hold)

Analyst: Ari Bensinger

Corning sees optical fiber (50% of Q2 sales) growth significantly below previous 15% guidance, on a sudden spending slowdown from incumbent carriers. Corning expects second-half fiber volume lower than the year-earlier period, and still projects fiber prices flat to down 5% and a lower product mix of premium fiber. The company will adjust manufacturing operations, including eliminating 1,000 employees. The total headcount cuts now are at 8,000 -- 20% of the workforce since the start of 2001. S&P is lowering its 2001 EPS estimate by $0.08, to $0.80, and is lowering the 2002 estmate by $0.07, to $0.70. But at 1.1 times the book value, Corning's difficulties are already reflected in its price.