Path: bloom-picayune.mit.edu!enterpoop.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: Tue, 24 Nov 92 12:40:58 EST Message-ID: <7.1992Nov24.124058@AmeriCast.com> Lines: 111 11/24/92 TITLE NASDAQ Amex Market Nasdaq Declines As Microsoft Infects Techs GenCare Health Sets High; Andrea Electronics Up 33/8 More Lance Ignon A sharp descent in Microsoft Corp. yesterday cast a pall over the entire technology group, which in turn drove the Nasdaq market to a modest loss. Microsoft plunged 61/2 to 881/2. With 9.7 million shares trading, it was by far the session's most ac- tive issue. Market watchers said analyst Rick Sherlund of Gold- man, Sachs & Co. cut his estimate for the year ending in June to $3.70 from $4 a share. It earned $2.41 a share last year. Sher- lund was unavailable for comment. The Nasdaq composite index dipped 3.77 points, or 0.59%, to 638.83. Declines overcame advances 1,280-to-1,254 as volume con- tracted 16% to 208 million shares. The New York Stock Exchange composite index lost 0.29%, and the American Stock Exchange fell 0.37% as losers led 279-to-255. Microsoft's stock also may have come under pressure from rival Lotus Development Corp.'s an- nouncement that it planned to cut its prices in Europe. Lotus- fell 3/4 to 201/4. Microsoft, whose market value dropped $1.75 billion yesterday, has become the undisputed bellwether of the software industry and one of the most influential stocks in the entire technology group. Even the most cautious investors often hold a piece of the software developer because of its steady earnings record and dominant market position. So when Microsoft cracks, all the techs follow. Eight out of the 10 most active stocks yesterday were techs. All of them declined. The news on Microsoft was followed by Salomon Brothers Inc. downgrading Apple Computer Inc. to a hold from a buy. Salomon said it was concerned about another looming price war among makers of personal comput- ers. Apple- fell 3/4 to 563/4. "All the other high tech stocks just went down in sympathy with those two (Microsoft and Apple)," said Jer- ry J. Logan, trading room manager at Herzog, Heine Geduld Inc. "I think they were looking for a bounce in Microsoft but they didn't get it." Softwares were hit hardest. BMC Software Inc. lost 3 to 611/2, Autodesk Inc. 2 to 461/2, Borland International Inc. 15/8 to 221/4 and Oracle Systems Inc. 11/8 to 21. System Software As- sociates Inc. dropped 23/4 to 311/4 in heavy trading of 1.7 mil- lion shares. It didn't help that the company reported a fiscal fourth-quarter profit of 45 cents a share, 114% better than a year ago but two cents shy of Wall Street's mean expectation, ac- cording to Zacks Investment Research Inc. Makers of local area networks, which are ranked No. 1 among 197 industries tracked for trailing six-month price performance, got hit, too. SynOptics Communications Inc. 11/4 to 64 Three Com Corp. 11/2 to 211/2 and Cisco Systems Inc. a point to 73. Software companies whose pro- ducts interact with network systems also got unplugged. Novell Inc. shed 11/4 to 30 and PeopleSoft Inc., which soared 143% on its debut last Thursday, eased a point to 271/4. Computer makers also suffered. Dell Computer Corp.- , off 33/4 Friday, fell 11/4 to 333/8 and with 5.3 million shares changing hands was the session's second-most active stock. The third-most active issue was Sun Microsystems Inc., which dropped 13/8 to 311/8. Elsewhere, in the trucking group, Yellow Freight System Inc.- stalled, falling 17/8 to 277/8. Donaldson, Lufkin & Jenrette Securities Corp. lowered its rating to unattractive from neutral. Yellow Freight has been in an uptrend, and, prior to yesterday's action, had gained 36% during the prior two months. DLJ said it was concerned that Yellow Freight paid too much last week for Preston Corp. Yellow Freight agreed to pay $24 million and assume $85 million in debt. Preston, which has lost money for each of then past three years and past three quarters, fell 3 to 35/8 in heavy trading. The Nasdaq's loss would have been more pronounced had it not been for selected strength among a variety of medical issues. Among health maintenance organization stocks, GenCare Health Systems Inc., which shot out of its base last week, added another 2 to a new closing high of 213/4. Earlier this month, the St. Louis-based company announced it had added another 493 hospi- tal beds plus urgent care centers to its Sanus health plan. Rehabclinics Inc. burst out of a seven-week base, climbing 2 a new closing high of 17 on 213,900 shares - six times average. The company and analysts said there was no fundamental change to ac- count for the jump. Sheryl R. Skolnick, analyst with Advest Group in Hartfold, Conn., said the stock, which has a float of only 7.4 million shares, was probably pushed up by institutional demand. Skolnick looks for the provider of physical therapy to earn 11 cents a share this year, up from a dime last year. But she ex- pects a string of acquisitions to drive profits up 418% to 57 cents a share in 1993. Abiomed Inc.- climbed 11/2 to 14. Based in Danvers, Mass., the company said it gained Food and Drug Administration approval for a medical in- strument known as the BVS 5000, which aids blood flow in patients recovering from heart surgery. Natures Bounty Inc. jumped anoth- er 21/4 to 15. The maker of health food and beauty products re- ported a fiscal fourth- quarter profit of 28 cents a share, up from one penny a year ago. For the year, the Bohemia, N.Y.-based company earned 56 cents a share, 195% better than the year be- fore. Elsewhere, Prima Energy Corp.- , which gained more than four points last week, added another 3 to 251/2. The move may be a follow-through from the company's announcement Nov. 13 that fiscal second-quarter earnings had climbed 106%. Sandy J. Irlan- do, Prima's controller, added that Prima's development of a na- tural gas field in Northern Colorado was "equal or above expecta- tions." In Amex action, Andrea Electronics Corp. surged another 33/8 to a new closing high of 341/2 after more than tripling last week. The company is in talks with major communications companies regarding a new noise cancellation product. 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