STOCKS TO WATCH: Applied Microsystems, Drkoop.com, Global Crossing, Solectron
Expect the following technology stocks to be among Tuesday's most actively traded issues: Applied Microsystems, Drkoop.com, Global Crossing and Solectron.
Applied Microsystems on Friday warned that it would post a wider-than-expected loss in its second quarter.
Company officials said it will lose between 28 cents to 33 cents a share in the quarter, considerably higher than the loss of 2 cents a share predicted by a survey of analysts for First Call Corp.
In the year-ago quarter, it earned a penny a share.
Its shares closed up 3/16 to 4 1/8 Friday.
The developer of embedded-systems software said its sales would be between $7.2 million and $7.4 million for the second quarter ended June 30, compared with $9.2 million in the year-ago period.
Company officials blamed softness in Asia as well as a transition to a new selling model for the shortfall.
"It is clear that we have an operational problem in our sales organization and we are making changes to remedy the problem," said CEO Stephen Verleye in a statement.
America Online Inc. (NYSE: AOL) has signed a four-year, $89 million deal with health site Drkoop.com Inc. (Nasdaq: KOOP). The deal calls for the Drkoop site to be featured on all five of AOL's sites, including its proprietary AOL and CompuServe services. Drkoop will pay AOL $89 million over the next four years, and give AOL warrants to buy shares in Drkoop.
Global Crossing shares should be on the move Tuesday after company officials announced it had completed its $850 million acquisition of Cable & Wireless Plc's undersea cable unit.
The new unit will be known as Global Marine Systems Limited and will have the world's largest flotilla of cable laying and maintenance vessels as well as a workforce of 1,200, Global Crossing said.
Global Crossing wants to build an Internet and data communications network to cover four continents and 80 percent of the world's international traffic.
It is also battling with Qwest Communications International Inc. (Nasdaq: QWST) for U S West Inc. (NYSE: USW) and Frontier Corp. (NYSE: FRO). The companies have agreed to a $28 billion merger agreement with Global Crossing, but are in talks with Qwest, which bid $35.6 billion in an unsolicited offer.
Global Crossing shares closed unchanged at 40 Friday.
It's always a good idea to keep a close eye on insider trading to gauge a stock's likely performance in the near future.
Solectron Corp., which has enjoyed solid earnings and a corresponding rise in its stock price in the past two quarters, is one worth watching.
CEO Koichi Nishimura exercised some options to sell 80,000 shares worth $5.2 million in late June. He and two other members of the company's board of directors said they unloaded the shares to diversify their portfolios.
Nishimura still holds about 764,428 shares, either directly or in the form of options.
Solectron directors Kenneth Haughton sold 24,000 shares and Richard D'Amore unloaded 6,000 shares. All three had signaled intentions to sell the stock in separate filings with the Securities and Exchange Commission, and the sales were later confirmed by the company.
Solectron shares closed up 15/16 to 67 1/8 Friday.