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: Wed, 25 Nov 92 12:57:53 EST Message-ID: <9.1992Nov25.125753@AmeriCast.com> Lines: 118 11/25/92 TITLE NASDAQ Amex Market Nasdaq Surges 1.1%, Setting A New High Softwares, Networkers Pace Rally; Media Logic Up 11/2 More Lance Ignon The Nasdaq market surged to a record high yesterday as com- puter technology stocks staged a powerful rebound following Monday's sell-off. The Nasdaq composite index advanced 7.10 points, or 1.1%, to 645.94. The previous record of 644.92 was set on Feb. 12. The ad- vance came on 244 million shares, up 17% from Monday, as winners led 4-to-3. The action drove 221 stocks to new closing highs, while 35 ended with new lows. The listed exchanges posted modest gains. The NYSE composite in- dex rose 0.50%, and the American Stock Exchange market value in- dex added 0.20%. Software stocks, which were hammered Monday, bounced back with a vengeance. Microsoft, down 61/2 points Monday on an earnings downgrade, recouped 3 to 911/2. Donaldson, Lufkin & Jenrette Securities Corp. analyst Scott Smith reiterated a buy, noting that Microsoft does not plan to lower prices in Europe. The stock had weakened on speculation that Microsoft would be forced to match European price reductions announced by Lotus Development Corp., which advanced 3/4 to 21. System Software Associates Inc., down 23/4 Monday after earnings came in slightly shy of ex- pectations, rebounded 33/4 to 35. Also, BMC Software Inc. climbed 37/8 to 653/8, Autodesk Inc. 21/4 to 483/4, Cerner Corp. 17/8 to 511/2, Sybase Inc.- 11/4 to 431/2, Software Spectrum Inc. 11/4 to 251/4 and Adobe Systems Inc. 11/8 to 333/8. The most pronounced gains went to the local area network stocks, which have been the vanguard of the tech rally that kicked off last month. Retix gained a point to 163/4 on volume of 1.4 million shares, seven times average. The developer of networking software and hardware started ship- ping its Routerxchange 7000, which ties together local area net- works into one corporate system. Retix Chief Executive Steve Frankel called the product a "whole new generation of router pro- ducts" because it operates on RISC (reduced instruction-set com- puting) technology. The group's most powerful stocks reaffirmed their leadership. Wellfleet Communication Inc. vaulted 35/8 to 675/8, Cisco Systems Inc. 23/4 to 753/4, SynOptics Communications Inc. 11/2 to 651/2, Novell Corp. 13/4 to 313/4 and Crosscomm Corp. 13/4 to 251/2. All five stocks were featured in Tuesday's Investor's Corner in Investor's Business Daily. The Computer - Peripheral Equipment index, up more than 30% this year, scored another advance. IIS Intelligent Information Systems Ltd. of Is- rael rose 2 to 371/4 and Hutchinson Technology Inc. 11/8 to 385/8. The group's biggest winner of late, Media Logic Inc., ad- ded 11/2 to 341/4 -another new high. The Plainview, Mass., maker of test equipment used in making floppy disks has soared nearly 1,750% this year. Raymond E. Blessing, analyst with G.R. Stuart Co. in Acton, Mass., expects Media Logic, which trades on the Amex, to earn $1.20 a share in fiscal 1993 ending in March. That would be a 145% improvement over the year before. Earnings climbed 320% in the most recent quarter and 3,200% in the one be- fore that. Blessing says there are four reasons for Media Logic's success: It has only three major competitors, two of which are in Japan; its margins have been improving; strong management; increased demand for floppy disks. "There's a PC re- volution going on," he said. "The more PCs there are the more demand there will be for floppies." The company's chief financial officer, Paul O'Brien, said demand has been particularly strong from China's growing technology industry. O'Brien added that his company has been outflanking its Japanese competitors in Asian markets. Blessing noted that customers from Hong Kong and China were taking the unusual step of ordering Media Logic products at the recent Comdex technology trade show in Las Vegas. "Usually these things are negotiated over the phone," he noted. FileNet Corp., which has been recovering from a sharp decline earlier this year, added 11/2 to 221/2. Citing expectations for an earnings rebound, Morgan Stanley & Co. initiated coverage with a buy recommendation. SCI Systems Inc. surged 13/8 to 151/2 as 1.3 million shares changed hands -four times usual. Merrill Lynch Capital Markets recommended the stock as above average in the intermediate term and a buy in the long run. Dell Computer Corp. advanced 21/8 to 351/2. The company said Monday that the Securities and Exchange Commission was looking into recent trading activity. Newcomer Pyxis Corp. vaulted 21/2 to 405/8. The stock has nearly tripled since coming public at $14 a share in July. Pyxis makes microprocessor-controlled storage units for hospitals. Earnings have been accelerating rapidly for the past five quarters and were up 1,700% to 18 cents a share in the most recent period. Not all tech stocks participated in the rally, though. Sun Mi- crosystems Inc. descended 3/4 to 303/8. Concerned over delays in Sun's high- end workstation, Salomon Brothers Inc. and SoundView Financial Group Inc. cut their estimates. Alias Research Inc. fell 13/4 to 3. The software developer said it would take an $8 million charge for the third quarter and post a loss. It also an- nounced that the SEC had launched an informal investigation. In the biotechnology group, Amgen Inc. jumped 25/8 to 775/8 and Biogen Inc. 17/8 to 447/8. Synergen Inc. rose 11/2 to 575/8 after the company said that a new round of testing will not delay the release of Antril, a treatment for sepsis syndrome. Medco Con- tainment Services Inc. climbed 13/8 to 351/2. The company said it was suing Diagnostek Inc. for $3 million over alleged damages that resulted from the cancellation earlier this month of a merger between the two firms. On the downside, 50-Off Stores Inc. fell 13/4 to 16 after reporting a third- quarter profit of 10 cents a share - 23% less than a year earlier. The San Antonio, Texas-based low-cost retail chain blamed unseasonably warm weath- er. Lesco Inc. surged 33/4 to 171/2 after Home Depot Inc. said it would begin selling the company's turf products. In Amex ac- tion, Forest Laboratories Inc. gained 11/8 to 43 The New York- based company reported encouraging results in preliminary trials of Synapton, a treatment for Alzheimer's disease. 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