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: \TITLE Date: Thu, 29 Oct 92 13:13:30 EST Message-ID: <6.1992Oct29.131330@AmeriCast.com> 10/29/92 TITLE {Techs, Medicals Pace Broad Nasdaq Rally HMOs Bounce Back; Wellfleet Leads Solid Networking Group Lance Ignon Technology and medical stocks recovered from Tuesday's beating to drive the Nasdaq market sharply higher yesterday. The Nasdaq composite index advanced 4.44 points, or 0.74%, to 601.39 - its highest close since early April. Volume rose 2% to 208 mil- lion shares and once again outpaced turnover on the New York Stock Exchange, where 203 million issues traded. Nasdaq advances outpaced declines 13-to-10. The NYSE composite index added 0.28% while the American Stock Exchange market value index rose 0.62% as winners led 279-to-235. After being massacred for two days, health maintenance organization stocks made a modest comeback. The group, which has surged this year as presidential candidates have suggested using HMOs as part of health-care reform, plunged Monday after industry leader U.S. Healthcare Corp. reported ris- ing expenses and shrinking margins. U.S. Healthcare lost 17% between Monday and Tuesday but rebounded a point to 421/8 yesterday. Also on the mend were Ramsay HMO Inc.- , up 11/4 to 31, and Amex issue Foundation Health Corp., ahead 11/4 to 39. United Wisconsin Services Inc. added 2 to 403/4. The HMO announced a profit of 61 cents a share for the third quarter. That's 53% better than a year ago and a penny above expectations. Healthsource Inc., off early in the session following a downgrade from Smith Barney, Harris Upham & Co., closed at 39, up 11/2. The HMO announced a 3-for-2 split. It also said it would apply for listing on the NYSE. As so often happens, Food and Drug Adminis- tration edicts named the tune for several medical stocks. Mitek Surgical Products Inc. found some much needed support, surging 4 to 241/4 on four times its average volume. The Norwood, Mass., company said the FDA expanded the approved uses of its surgical implant, the GII anchor, for reattaching tendons and ligaments to the bone. Scimed Life Systems Inc.- shot up 31/4 to 513/4 but on only half its average volume. The company said Tuesday that it received FDA approval to market a new type of balloon catheter. Tokos Medical Corp. recouped a point to 18 as 1.5 million shares changed hands. An FDA advisory panel is scheduled today to review the safety and efficacy of Ri- todrine, a drug used to prevent premature labor. Although Tokos does not make the drug, it administers a similar compound, and any approval might benefit this form of treatment. The stock fell 41/8 Monday after the company reported disappointing third- quar- ter results. One of Tuesday's swans, Genzyme Corp., turned into yesterday's ugly duckling, plunging 35/8 to 393/8 as 2.2 million shares changed hands, five times average turnover. Investors bid up the stock 11/4 points Tuesday on expectations of a glowing earnings report after the close. But the numbers fell short. The Boston-based biotechnology company reported a third-quarter pro- fit of 38 cents a share. That's 73% better than a year before, but two cents short of what Wall Street was looking for. Tech- nology stocks stabilized after being pounded Tuesday by profit- taking and jitters over International Business Machine Corp.'s freefall. IBM, which trades on the NYSE, added 13/8 to 671/8. Pyxis Corp., which makes minicomputers for hospital use, jumped 27/8 to 331/8. The stock has been on a steep ascent since coming public in July at $14 a share and after reporting a third-quarter profit of 18 cents a share, up from a penny a year earlier. Market laggard Symantec Corp. gained 11/4 to 13 despite fiscal second-quarter profits coming in even lower than the lousy report investors had expected. The software developer checked in with a loss of 25 cents a share, contrasted with a gain of 10 cents a year ago. Wall Street had been looking for a loss of 16 cents a share, according to Zacks Investment Research Inc. Investors may have taken solace from the company's workforce reduction and con- solidation of facilities. A basket of other software issues also made headway, especially during the final 90 minutes of trading. Marcam Corp.- gained 23/4 to 273/4, BMC Software Inc. 2 to 583/4, Broderbund Software Inc. 13/4 to 36, Sapiens International Corp. 11/2 to 151/2, Adobe Systems Inc. 11/4 to 347/8, Autodesk Inc. 11/8 to 513/8 and Verifone Inc. a point to 181/4. Networking stocks, one of the brightest spots in technology, also were stronger. Wellfleet Communcation Inc. soared 31/4 to 513/4, SynOptics Communications Inc. 21/8 to 591/8, Cisco Systems Inc. 11/2 to 60 and Optical Data Systems Inc. 11/4 to 151/4. Amex is- sue Cheyenne Software Inc. added 21/2 to 263/4. Even Adaptec Inc., which plunged last week after the maker of data control components predicted flat third-quarter results, ad- ded 15/8 to 221/8 in robust trading. On the downside, fiber- optics maker Spectran Corp. lost 11/2 to 131/4. The firm an- nounced a third- quarter profit of 19 cents a share - 27% better than a year ago but a meager increase compared with the average quarterly increase of 108% during the previous four periods. Elsewhere, Dreyers Grand Ice Cream Inc., which picked up nearly three points last week, tacked on another 11/4 to 183/4 even though its earnings came in below expectations. The Oakland, Calif.-based company reported a third-quarter profit of 42 cents a share, up 11% from a year ago but two cents shy of the mean ex- pectation, according to Zacks. Thorn Apple Valley Inc., one of last year's top performers, climbed 2 to 37. The Southfield, Mich., hog slaughterer announced a 3-for-2 split payable Dec. 23. Thorn Apple's last split, also a 3-for-2, occurred in June 1991. An intial public offering of 1.3 million shares from HCC In- surance Holdings Inc.- , priced at $12 a share after Tuesday's close, closed yesterday at 133/4, up 13/4. KCS Energy Inc., up 11/4 Tuesday, vaulted another 3 to 25 - a closing high. The Edis- on, N.J.-based energy company has been benefiting from a lucra- tive natural gas contract with Tennessee Gas Pipeline Co., said analyst John Myers of South Coast Capital Inc. in Austin, Texas. KCS is exploring for more natural gas reserves, which would be subject to the same contract and further enhance revenues, Myers said. On the Amex, Epitope Inc., maker of oral specimen collec- tion devices, increased 17/8 to 191/8. 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