Goldman Talks Up Chip Stocks

Merrill downgrades satellite radio stocks; Great Atlantic & Pacific restates earnings; plus other stocks in the news

Micron Technology (MU ) gained as semiconductors were rallying on bullish DRAM comments from Goldman Sachs.

Taiwan Semiconductor (TSM ) gained after Goldman reiterated recommended list rating.

WorldCom (WCOME ) shares will be delisted from the Nasdaq on Friday, July 5. The Justice Dept. is reportedly seeking to curtail WorldCom's internal probe into accounting irregularities to allow the U.S. to first conduct its own inquiry, a demand reflecting possible concerns about witness tampering: WSJ.

General Electric (GE ) gained after Goldman Sachs reiterated recommemded list rating for GE and American Standard (ASD ). Goldman says in a quarterly industry report that it believes that GE, ASD, Cooper Industries (CBE ), Emerson Electric (EMR ), and Watsco (WSO ) offer the best value in the electical equipment group. GE had no news.

Parker Hannifin (PH ) says June orders for North American Industrial business increased 2%, while Rest-of-World Industrial segment increased 5%. Goldman Sachs reiterated recommended list rating.

Actrade Financial (ACRT ) shares skidded after it cut fourth quarter EPS guidance to breakeven-$0.05, excluding possible effects of significant adjustments to bad debt reserves. It cut workforce by 20%.

Merrill downgraded satellite companies XM Satellite (XMSR ), Garmin (GRMN ), and Sirius Satellite Radio (SIRI ). Merril cut XMSR to to near term neutral from buy, but kept long term buy.

Great Atlantic & Pacific (GAP ) says as a result of the delay caused by its internal review, it rescheduled its Annual Meeting of Stockholders for July 30. The supermarket chain restates its financial results for fiscal year 1999 and fiscal year 2000, and adjusts results for fiscal year 2001.

Merck (MRK ) set proposed terms for its initial public offering of its Medco pharmacy benefit unit at 46.7 million common shares, with an expected price range of $20 to $22 apiece. A shareholder lawsuit was also filed against the company, alleging that the company misreported revenues for the Medco division.

In response to a Wall Street Journal article that Qwest Communications (Q ) is being investigated by the U.S. Justice Dept., the company says it has "no reason to believe that we are the subject of any investigation by U. S. Dept. of Justice."

Guess (GES ) widens second quarter loss estimate to $0.16-$0.18. The apparel retailer posted 6.2% lower June same-store sales, and 1.6% lower total sales.

JDA Software (JDAS ) sees $0.17-$0.18 second quarter EPS from operations on total revenue of $57 million. It cited a change in timing of several large contracts. Orthodontic Centers (OCA ) - In 8-K, the company reaffirms $0.39 second quarter, and $1.54 2002 EPS guidance.

Webmethods (WEBM ) sees worse than expected $0.03-$0.05 first quarter loss per share (pro forma) on revenue of $47 million to $48 million.

RHBT Financial (RHBT ) terminated its president and COO C. Robert Herron, as a result of internal irregularities discovered in Bank's commercial loan department.

Vivendi (V ) may face a $2.64 billion cash shortfall by yearend unless it can secure a new line of credit soon: WSJ.

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