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RealMoney.com's MIDDAY UPDATE

September 11, 2000

http://www.realmoney.com
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Market Data as of 9/11/00, 11:30 AM ET:

o Dow Jones Industrial Average: 11,258.76 up 38.11, 0.34%
o Nasdaq Composite Index: 3,991.02 up 12.61, 0.32%
o S&P 500: 1,501.97 up 7.47, 0.50%
o TSC Internet: 820.94 up 12.03, 1.49%
o Russell 2000: 537.80 up 2.10, 0.39%
o 30-Year Treasury: 107 15/32 down 11/32, yield 5.715%

______________________________________________________________________
In Today's Bulletin:

o Herb on TheStreet: Taking a Closer Look at the Honey Well

Telecom: The Quantum Bridge Question: How Far Can Optical Mania Go?


The maker of networking gear is preparing for an IPO. Will the market
hold up long enough for this niche play?

http://www.thestreet.com/tech/telecom/1073106.html
____________________________________
Wrong! Dispatches from the Front: Currency Pain Will Be Commencing
Shortly

International tech companies and giant pharma names begin feeling the
sting of a weak euro.

http://www.thestreet.com/p/comment/wrong/1072941.html
____________________________________
Brokerages/Wall Street: MarketXT Making Move Into Institutional Trading


Having picked up top talent from competitor Instinet, the off-Wall
Street underdog is aiming high.

http://www.thestreet.com/stocks/brokerages/1072717.html
____________________________________
Global Portfolio: Readers Find a Way to Play the Old Sod

The mailbag holds a closed-end fund focusing on Ireland, while others
look to the eurozone.

http://www.thestreet.com/int/tradewinds/1072925.html
____________________________________
Mutual Funds: 10 Questions With MFS Utilities Fund Manager Maura
Shaughnessy

The skipper sees more growth despite big price run-ups.

http://www.thestreet.com/funds/funds/1068363.html
____________________________________
Asia/Pacific: Nikkei Indices' Components Will Change

http://www.thestreet.com/int/asia/1072972.html
______________________________________________________________________
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______________________________________________________________________
Herb on TheStreet: Taking a Closer Look at the Honey Well

By Herb Greenberg
Senior Columnist
9/11/00 6:30 AM ET

An item in one of last week's Hotlines questioned whether a key "tell"
toward a possible preannouncement from Honeywell (HON:NYSE) was an
earnings warning from Invensys, a British controls and automation
company. Invensys is a Honeywell competitor, and Honeywell fans had
been looking at the company's controls group for signs of strength this
quarter. Got a bunch of angry email, in response, telling me I must be
a kook (or actually, something much worse ) because just a few weeks
ago Honeywell said it was comfortable with earnings estimates of 76
cents per share, which would be a pleasant 10% gain.

True, but this is, after all, the same Honeywell that in June gave
expectations of one thing for second-quarter revenues, only to amend
that a few weeks later with a lower number. And this is, after all, the
same Honeywell that several quarters ago said it would take no more big
charges, and then turned around and took a whole bunch of new charges.

Will the same thing happen this time round? Hard to say, and as of
Friday all a Honeywell spokesman would say to me was: "We're sticking
with our guidance." On earnings, that is. Interestingly (and subtly)
Honeywell didn't say anything about revenues in its recent update, and
the spokesman said there will be no revenue guidance now, either. Stung
once, too smart to be stung twice, I guess.

But that also highlights that Honeywell has entered the quarter with
negative revenue momentum, which is not what Wall Street wants to see.
Earnings can meet estimates lots of different ways (an item here back
in March showed how half of Honeywell's 20% earnings gain came from
pension income) but revenue represents business in the raw.

So, why worry now? According to one longtime Honeywell watcher, who
prefers to go incognito (so he can protect his relationship with the
company, in which he still holds a small stake), events that could
further effect this quarter's earnings and revenues include the sharp
rise in oil prices -- the same rise in oil prices that last week helped
clobber DuPont (DD:NYSE), which warned of lower earnings (thanks, in
part, to oil). Honeywell also disclosed that problems with brakes it
makes for buses will shave 2 cents per share off earnings. The warning
came after the earnings reassurance a couple of weeks ago, but was
included in the recent forecast. It's unclear, however, how the
problems will affect brake sales (and therefore revenues), going
forward. Oh, and Honeywell is laying off 5% of its workforce. (A
supposed growth company firing people?!) Then there are more charges,
lots of charges -- but the 76 cent per share number excludes them.

What's more, analysts are just starting to take a close look at the
company now that they're back from summer vacation. At least one
analyst who has tried to get some sign of how things are going was told
the company hasn't seen the August numbers yet, which means there still
could be reasons for concern.

All of that said, Honeywell has been doing loads to improve itself, but
our longtime Honeywell watcher, who is looking for the right time to
hop back in, doesn't think there'll be signs of a solid rebound until
next summer. At the earliest.

Short Positions

 o From reader John Lee: "How's this for an inflation indicator? Down
here in our cafeteria today we were confronted by a sign that indicated
the cafeteria was raising prices "to cover rising food and labor
costs..." But inflation is nearly nonexistent, right? Right (he said,
sarcastically). Wouldn't be surprised to see a few fast-food chains
that missed earnings last quarter, because of rising costs, bite the
bullet and raise prices, too. (A dime or a quarter isn't going to drive
customers away; but a dime here at one place and a quarter there at
another would certainly lead to higher prices across the board. Or so
you'd think!)

 o Stupid poll?!: That's what some folks thought of Friday's poll which
asked whether you should pay more attention to a company, friendly
analysts or unfriendly analysts. (Unfriendly won by a landslide.)
Several readers, however, wish I'd had a fourth alternative: All of the
above. Says reader Bridget Magnus: "I think that if a person is going
to make a realistic, informed decision about a company it is a good
idea to listen to all three of those sources (the company, friendly
analysts, and unfriendly analysts). Putting them together will give a
potential investor a much clearer picture of what is (or isn't) going
on." Great point! Which brings us to today's poll:

Feel free to send emails to my sidekick Mark Martinez with any reason
why you think the way you do. Cramer has pretty strong opinions about
this. And speaking of JJC, don't forget that he and I will be going
head-to-head at RealMoney.com's "Cramer Live" conference in San
Francisco later this month. Click here for more info.

 o Bye, George: Marketing columnist George Lazarus of The Chicago
Tribune died Friday while commuting on the train to work. He was 68 and
he still wrote a daily column. He was a former colleague and I'd like
to think, a friend, whom I didn't keep in touch with nearly enough.
George wrote the textbook on how to be a hard-working, daily,
news-oriented columnist. You could see just how hard he worked when he
walked through the office at the end of every day, looking exhausted,
as he handed the finished copy into his editor. His salutation to me,
when he saw me was always, "Hey, scoop." Coming from the scoop, that
was an honor. Hey, George. -30-

Herb Greenberg writes daily for TheStreet.com. In keeping with TSC's
editorial policy, he doesn't own or short individual stocks, though he
owns stock in TheStreet.com. He also doesn't invest in hedge funds or
other private investment partnerships. He welcomes your feedback and
invites you to send any to Herb Greenberg. Greenberg also writes a
monthly column for Fortune.

Mark Martinez assisted with the reporting of this column.
______________________________________________________________________
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