FINANCIALWEB WEEKLY
http://www.financialweb.com
June 1, 2001

Divya Kumar
_______________________________________________________________________
TABLE OF CONTENTS

1. Looking Forward
2. Last Week
3. Jump Reports

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                   Nasdaq    S&P 500	NYSE	  Dow
Close 05/31/01     2110.49   1255.82    641.67    10911.94
1-week change      -7.54%    -2.86%     -1.68%    -1.89%


1. LOOKING FORWARD
Our Take: Waiting Period

Economic and Market Outlook:

Two months of upswing and hesitation has crept back into the markets.  Analysts are busy downgrading sectors and stocks, stating that prices have risen too much - unsupported by the fundamentals. It is true that  industry problems are too deep rooted to be miraculously solved overnight.  The markets' rise is more likely due to a change in investor sentiment - an attitude of "enough is enough" - rather than an elimination of the problems.

However, it is also true that recovery is on its way. Inventories are  improving and  rate cuts are  spurring consumer spending. The production lines will start rolling again. The only hitch is a lengthy wait for consumer demand to translate into capital spending and a resolution of  overcapacity. The Fed is doing its best: patience is the name of the game. Till then, volatility in the market is inevitable.

Economic data expected next week includes factory orders, construction spending, NAPM services index, wholesale inventories and consumer credit.

Economic Calendar: http://www.123jump.com/econ_cal_live.htm

Earnings Outlook:

There is still a month before earnings season, but warnings season has begun. If the latest warnings are any sample of what has yet to come, investors have a right to be wary.

Name                           Date     Est EPS  Whispers
Comverse Technology (CMVT)     6/4/01    0.42     0.43
Riverstone Networks (RSTN)     6/4/01   -0.05      -
Carrekar Corporation (CANI)    6/5/01    0.12     0.12
Comtech Telecom. (CMTL)        6/5/01    0.17     0.17
Omnivision Technologies (OVTI) 6/6/01    0.00     0.00
BE Aerospace (BEAV)            6/6/01    0.24     0.28
National Semiconductor (NSM)   6/7/01   -0.03    -0.03

http://www.123jump.com/p5t.htm

IPO Outlook:

It is heartening to finally see some activity in the IPO market.  Two months of rally have raised the spirits of aspiring firms, encouraging them to step up to the debut plate.

Company                      Shares (M)   Lead Manager
Alliance Data Systems Corp.  13           Bear Stearns
United Surgical Partners     9            CS First Boston
Torch Offshore Inc.          5            UBS Warburg
Unilab Corp.                 6.69         Salomon Smith Barney

http://www.123jump.com/ipo_calendar.htm


2. LAST WEEK

Economic and Market Update:

Following a lackluster Friday, even the Memorial Day holiday weekend  couldn't revitalize the bulls. Stocks headed steadily downward until Tuesday evening, troubled by earnings warnings, analyst downgrades and acquisition news. Tech stocks were worst hit. Wednesday was, however, a different story - investors flocked back to the stock market to buy anything from tech to Old Economy.

Networking, semiconductor, fiber-optic, software and Internet stocks were hurt most in the tech sector. Other sectors that took a beating were utilities, biotech, retail and finance. Sectors that showed strength for the first half of the week included drug, medical, insurance, chemical and paper stocks.

On the economic front, consumer confidence rose to 115.5 in May from a revised 109.9 in April. Aggressive rate cuts by the Fed and renewed strength in the stock markets have boosted the spirits of consumers. This infused hope that consumer spending may rebound.

Personal income and spending figures showed that U.S. personal spending rose faster than income. Income rose 0.3%, while spending rose 0.4% in April, in synch with analyst estimates. Weekly jobless claims rose yet again - to 419,000 last week from 407,000 the prior week.

Consumer confidence: http://www.123jump.com/story.htm?story_id=11666

Economic Calendar: http://www.123jump.com/econ_cal_live.htm

Company Highlights:

Mergers:
- Talks between Alcatel SA (ALA) and Lucent Technologies (LU) broke down on Wednesday amidst speculation that Lucent would accept a $23.5 billion offer that would not bring any premium to its investors. http://www.123jump.com/story.htm?story_id=11681
- Conoco Inc. (COC), the fifth-biggest U.S. oil company has agreed to buy rival Gulf Canada Resources Ltd. (GOU) for $6.3 billion in cash and assumed debt.
- Tyco International Ltd. (TYC), the second-biggest maker of health-care supplies, will buy C.R. Bard Inc. for about $3.2 billion. http://www.123jump.com/story.htm?story_id=11691
- Investment and asset-management firm Legg Mason Inc. (LM)  agreed to pay $1.38 billion for closely held Private Capital Management L.P., which manages more than $8 billion in assets.
- Medtronic Inc. (MDT) agreed to purchase MiniMed Inc. for $48 a share and closely held Medical Research for $420 million in cash and stock. http://www.123jump.com/story.htm?story_id=11689
- In the biotech arena, genomics specialist Sequenom (SQNM) will acquire Britain's Gemini Genomics for $203 million in stock. http://www.123jump.com/story.htm?story_id=11670

Warnings & workforce reductions:
- Sun Microsystems (SUNW) warned that its earnings for the period ending June 30 would be 2 cents to 4 cents a share, lower than a previously estimated 6 cents.
- RadioShack Corp. (RSH) said it expects to earn 25 cents to 27 cents a share in its second quarter, about 25% below analyst expectations.
- Alcatel warned that its business earnings would slip this year.
- EMC Corp. (EMC) trimmed its workforce by 4%, or 1,100 people.

Downgrades:
- Sun Microsystems, EMC Corp., Altera (ALTR), Xilinx (XLNX), Nortel Networks (NT), JDS Uniphase (JDSU), Sycamore Networks (SCMR), Tellabs (TLAB), Broadcom (BRCM), Texas Instruments (TXN), PMC-Sierra (PMCS), Rambus (RMBS), Citrix Systems (CTXS)
- Morgan Stanley downgraded the networking sector saying that it may be third quarter of 2002 by the time  it turns around.
- Lehman Brothers downgraded the semi sector.

Earnings Update:

Vodafone Group Plc (VOD) posted a full-year loss for the first time.  Although earnings increased by 28% for the year, charges relating to acquisitions, especially that of Mannesmann AG,  depressed its bottom line. The stock plunged 3.7% to 188 pence on the announcement.

Company                         Est EPS    Actual EPS
Pumatech Inc. (PUMA)            -0.11      -0.11
Tech Data Corp. (TECD)           0.50       0.57
Costco Wholesale Corp. (COST)    0.23       0.23
Optio Software Inc. (OPTO)      -0.17      -0.16

Earnings section: http://www.123jump.com/p500.htm
Earnings Calendar: http://www.123jump.com/p5t.htm

IPO Update:

Announced:
Company                   Lead Manager
HPL Technologies (HPLA)   UBS Warburg

Week's IPOs: http://www.123jump.com/pricings.php3?opt=1


3. JUMP REPORTS

123Jump.com provides detailed analysis on markets, companies and industries. Here are some of the latest reports:

Chico's stock has boasted stellar performance - up more than 750% since May 1996, outperforming even Cisco, up just 220% over the same period. Year-to-date it is up 145%!! http://www.123jump.com/story.htm?story_id=11588

Financial news site MarketWatch.com is reducing its workforce and implementing additional cost restructuring plans in the face of a hostile business environment. http://www.123jump.com/story.htm?story_id=11693

ImClone announced that it had reached a milestone in an agreement with Merck KGaA. What's more, the company reached it early, earning $5 million in equity. http://www.123jump.com/story.htm?story_id=11712

It's not godfather or gravity, but it's just as strong a force to be reckoned with. The PC evolution may just be the pace car for the next lap in the networking race. http://www.123jump.com/story.htm?story_id=11708


Disclaimer: The material herein is for information purposes only and should not be deemed an offer or solicitation on our part with respect to the sale or purchase of any securities.




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