Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.ibd From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: NASDAQ Amex Market Date: Wed, 11 Nov 92 12:52:31 EST Message-ID: <5.1992Nov11.125231@AmeriCast.com> 11/11/92 3 TITLE NASDAQ Amex Market Nasdaq Surges Higher; 261 Mil Shares Trade Cisco Rises 35/8 On Earnings; MTC Electronics Up 13/4 More Lance Ignon Restaurant and retail stocks joined a powerful technology and biotechnology rally yesterday, driving the Nasdaq to its fifth consecutive gain on a tidal wave of volume. Analysts said investors have been pouring into the Nasdaq's growth oriented stocks for several reasons: President-elect Bill Clinton has promised to spend $10 billion upgrading the country's technology network; new technology product cycles; and optimism for improved fundamentals. The Nasdaq composite index soared 5.71 points, or 0.92%, to 627.76. It edged closer to its all-time high of 644.92 established Feb. 12. Advances overpowered declines 7-to-5 as turnover swelled 7% to a massive 261 million shares. It was the biggest turnover since Feb. 5, when volume reached a record 270 million shares. In another sign of strength, 184 stocks closed at new highs while 45 ended with new lows. Once again, the Nasdaq easily outperformed the listed exchanges. The New York Stock Ex- change composite index rose 0.01%, and the American Stock Ex- change market value index climbed 0.08% as losers edged winners 275-to-262. Leading the technology rally, Cisco Systems Inc. surged 35/8 to 70 - another new high - after confirming its repu- tation as an earnings powerhouse. Some 3.4 million shares traded, nearly four times average. The stock gyrated early in the ses- sion, then rocketed higher after the networking company reported a fiscal first- quarter profit of 52 cents a share, 108% better than a year earlier and a nickel above the mean expectation, ac- cording to a survey of analysts by Zacks Investment Research Inc. The report prompted analyst Joseph J. Bellace of Merrill Lynch Capital Markets to raise his estimate for fiscal 1993 ending next July to between $2.30 and $2.50 a share from $2.10 to $2.20 a share. Cisco earned $1.33 a share last year. Citing management figures, Bellace said Cisco added 201 customers during the quar- ter, up from an increase of 190 in the prior period. The eu- phoria spread to a few other network stocks. Lannet Data Communi- cations Ltd. vaulted 2 to 263/4 and Novell Inc. 11/8 to 33. Software stocks also had a powerful outing. Electronic Arts Inc.- rose 3 to 321/4, Parametric Technology Corp. 21/2 to 545/8, Pro- gress Software Corp. 13/4 to 553/4, Kronos Inc.- 11/2 to 22, BMC Software Inc. 11/8 to 665/8 and Microsoft Corp. a point to 927/8. Arnie Owen, managing director of trading for SoundView Financial Group Inc., which specializes in technology issues, said he now uses Microsoft as a bellwether for the entire computer industry. "It is the premier growth company," he said. "It took the place of where IBM used to be 10 years ago. Now no one cares about IBM. Microsoft is clearly the leader in technolo- gy." Among telecommunication stocks, Andrew Corp. hit a new high, gaining 2 to 401/4. Bellace upped his recommendation to "above average" from "neutral" and increased his fiscal 1993 estimate to between $3 and $3.10 a share, up from a mean of $2.95. The telecommunications firm earned $2.28 a share in the year ended September. A 130% jump in third-quarter earnings drove IDB Com- munications Group Inc. up 13/4 to 181/4. The operator of global fiber-optic networks earned 23 cents a share, compared with 10 cents a year ago. Analysts had been looking for 22 cents, accord- ing to Institutional Brokers Estimate System Inc. Cable televi- sion operator Liberty Media Corp. Class A soared 7 to 79. The stock may have picked up some support during an analysts' meeting in New York. Also, the Federal Trade Commission approved a limit- ed partnership in which Liberty will become a part-owner of a ca- ble service for Denver. In the biotechnology group, Isis Pharma- ceuticals Inc., up 11/8 Monday, advanced another 15/8 to 113/4 as volume swelled to 501,000 shares, 20 times average. The Carlsbad, Calif., company said it will receive a U.S. patent for an an- tisense drug used to treat the human immunodeficiency virus, which causes AIDS. The announcement was the latest in a series of bullish news that has helped revive the beleaguered biotech industry. Investors are hoping the Clinton administration will provide tax incentives for the industry. Meanwhile, several up- coming medical conferences are expected to yield positive com- ments. Investor's Business Daily's 115-stock biotech index surged 3.9% Monday after climbing 5.2% last week. the rise was led by some of the industry's most established names, such as Amgen Inc., which yesterday rose another 17/8 to 703/4. Although several other big names were flat to slightly lower yesterday, a number of second-tier stocks joined the rally. Interpharm Labs Ltd. jumped 13/4 to 36, Repligen Corp. 7/8 to 101/8, Cellcor Inc. 3/4 to 31/2 and Anergen Inc. 3/4 to 113/4. Sigma Aldrich Corp., which makes chemicals for medical research, climbed 7/8 to 571/4. The St. Louis-based company checked in with third-quarter earn- ings of 50 cents a share, a dime better than a year ago and two cents above expectations. Among restaurant stocks, Au Bon Pain Co. Class A jumped 21/2 to 213/4 -a new closing high. Also, Showbiz Pizza Time Inc. rose 2 to 293/4, Outback Steakhouse Inc. 13/8 to 243/8 and Buffets Inc. a point to 281/2. Elsewhere, Un- ited Retail Group Inc., which rose 21/8 to 253/8, sparked a mod- est rally among retail clothiers. United Retail announced a fis- cal third-quarter profit of 12 cents a share, 50% better than a year earlier. Dollar General Corp. added a point to 26 after re- porting an 88% improvement in third-quarter earnings to 30 cents a share. Meanwhile, Goody's Family Clothing rose 1 to 341/4 and Finish Line Inc. Class A a point to 173/4. In another retail area, MTC Electronics Technologies Co., a Cana- dian consumer electronics Firm, hit another new high as it surged 13/4 to 16 in heavy trading of 2.7 million shares. It climbed 11/4 Monday and has more than doubled in the past four weeks. The stock has been strong ever since the company said it was negotiating a jointly operated paging system throughout China. Yesterday, MTC said it planned to increase its proposed stock offering to five million shares from 1.2 million. It currently has 7.3 million shares outstanding. In Amex action, Johnson Pro- ducts Co., up 41/8 Monday, added another 3 to 371/2. The maker of hair care products primarily for African-Americans offered no ex- planation for the rise. This article is copyright 1992 Investors Business Daily. Redis- tribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM