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, 4 Nov 92 12:45:02 EST Message-ID: <2.1992Nov4.124502@AmeriCast.com> 11/4/92 TITLE NASDAQ Amex Market Nasdaq Falls 0.5% On Selling In Big Caps Highflier United Wisconsin Is Down 22% In Past Two Days Lisa Lee Freeman The Nasdaq market yesterday closed broadly lower in brisk election-day trading. The Nasdaq composite index slipped 2.99 points, or 0.49%, to 604.58. Losers topped winners 9-to-8, while turnover increased 4% to 187 million shares. Many of the market's biggest names weighed on the index as evidenced by the 1.32% drop in the Nasdaq 100, which tracks the market's largest non-financial stocks. Among Nasdaq 100 components under pres- sure, Microsoft Corp. fell 13/8 to 881/4, Nordstrom Inc. 13/8 to 331/8, Novell Inc. 11/4 to 291/4, Adobe Systems Inc. 11/4 to 333/4 and Amgen Inc. a point to 653/4. Meanwhile, several of the market's strongest groups took it on the chin, including health maintenance organizations, software developers and restaurant chains. On the listed exchanges, the NYSE composite index slid 0.53%, while the American Stock Exchange market value index inched ahead 0.03% as advances led declines 256-to- 238. In Microsoft's wake, Boole & Babbage Inc. slipped 2 to 22, Banyan Systems Inc. 13/4 to 19, Broderbund Software- 11/2 to 353/4, Borland International Inc. 11/8 to 323/8, Elec- tronics For Imaging Inc. 11/8 to 183/4, Parametric Technology Corp. 1 to 493/4 and BMC Software Inc. 7/8 to 591/8. Among the exceptions, System Software Associates Inc.- rose 11/2 to 251/8 and Informix Corp. 1/2 to 29. Informix re- ceived a final payment of $21.8 million for a military-automation contract. The federal contract, which was announced earlier this year, is one of the largest ever awarded to a software company, according to Informix. Informix is one of the year's hottest stocks, having quadrupled since Jan. 1. One of the day's biggest losers was United Wisconsin Services Inc. The stock, which lost 31/2 points in the previous session, plunged another 51/4 to 303/4. That's 22% in two days. On Monday, the HMO said its in- come tax rate is expected to increase significantly due to new accounting rules. That spurred at least one brokerage to reduce its 1993 earnings estimates. Fellow HMO Oxford Health Plans Inc.- , which had been gaining momentum in recent sessions ahead of third- quarter earnings, surrendered 5/8 to 427/8. It was down as much as 11/2 points. The company came in with operating earn- ings of 28 cents a share, which was 87% better than a year ear- lier and higher than expectations. Among other HMOs under pressure, Coventry Corp. lost 1 to 19, Mid Atlantic Medical 7/8 to 151/8, Ramsay HMO Inc.- 3/4 to 311/4 and U.S. Healthcare Inc. 3/4 to 423/4. Healthcare Compare Corp., down 7/8 on Monday, crumbled another 35/8 to 29. It was the second most actively traded stock with more than two million shares changing hands, or five times its normal turnover. Vivian Wohl, an analyst at Robertson, Stephens & Co., said the company's 69% jump in third-quarter earnings reported on Monday was in line with expectations but that revenues fell a bit short. In response, she lowered her revenue estimate for 1993 by $7 mil- lion, while maintaining her $1.25 earnings estimate for the year. For 1994, however, she cut her estimate by 15 cents to $1.70 a share. Wohl said growth at Occupational- Urgent Care Health Sys- tems Inc., which Healthcare Compare acquired in February, has not yet materialized and isn't expected to until the second half of 1993. Still, Wohl rates the company a buy and expects its stock to hit at least 42 within the next year. Healthcare Compare trad- ed as high as 44 in January. The highflying restaurant group was weak. Krystal Co. dropped 21/8 to 211/2, Apple South Inc. 2 to 203/4 and Longhorn Steaks Inc. 3/4 to 191/2. Elsewhere, laggard Matrix Service Co., down 17/8 points in the previous outing, lost another 2 to 81/2. The stock traded as high as 29 in February. Matrix has been losing ground in recent sessions on concerns about earnings. On the upside, biotechnology stocks continued picking up momen- tum. Liposome Inc. gained 11/4 to 93/4, Imclone Systems Inc. 11/2 to 77/8 and Scigenetics Inc. 2 to 91/4. Liposome reported lighter-than-expected losses for the third quarter. Separately, Dillon Read & Co. initiated coverage with a buy rating. Addi- tionally, Cytel Corp., up 11/2 points on Monday, climbed another point to 101/4. The biotech concern said a monoclonal antibody was found to block inflammation associated with acute lung inju- ries in rat experiments. The biotech group has made considerable progress in recent weeks. Up 2% last week, the group has seen its Relative Strength, based on 12-month price performance, climb to 72 last week from 11 four weeks earlier. That means it has out- performed 72% of the 197 industry groups tracked by Investor's Business Daily. The initial public offering of 2.3 million shares of Books-A- Million Inc. fared well despite the market's weakness. Priced at $13 a share, the stock opened at 15 and closed at 141/2. Ameri- can depositary receipt Akzo NV reversed course, rising 13/4 to 38. The Dutch chemical group said third-quarter earnings rose only 0.4% due to poor economic conditions and a weaker dollar. But the company said its profits may still surpass 1991's total. Quantum Health Resources Inc.- added 21/4 to 243/4. The stock has been trending higher for the past month. Paper concern Willamette Industries Inc. picked up 11/4 to 371/4, continuing to rebound from a six-month slump. Trading was twice Wilamette's normal rate. Giddings & Lewis Inc. rose 11/4 to 22. The machine tool manufacturer was upgraded to buy from hold by Prudential Securities Inc. The brokerage said it expects order rates, which were weak in the third quarter, to pick up in the fourth quarter. Last week, Giddings & Lewis re- ported a better-than-expected 27% increase in third-quarter earn- ings. On the Amex, Johnson Products Co. surged 45/8 to 283/4 on 81,700 shares. In recent weeks, the stock's average daily volume has been below 1,000 shares. Johnson Products has been trending sharply higher since August, when it traded below 15. Last week, it got a boost after the company posted a 60% increase in its fiscal fourth-quarter earnings. Johnson Products makes personal care items primarily for African-American consumers in the U.S. and overseas. 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