STOCKS TO WATCH: Intel, Lockheed Martin and Wireless Telecom
Expect the following technology stocks to be among Monday's most actively traded issues: Intel, Lockheed Martin and Wireless Telecom Group.
The chipmaker figures to see heavy action Monday after an executive said the company plans to invest in "scores" of companies this year in an effort to transform itself from a microchip company to an "Internet economy" company.
Stephen Gray, Intel's senior treasury manager for strategic investments in Israel, told Reuters that its financing arm, Intel Capital, would like to build on the dozen or so transactions made in Israeli high-tech companies in 1999.
"We'll probably do upwards of 20 transactions this year,'' Gray told Reuters during a telecommunications conference. "We're looking into virtually anything that plays into and supports the Internet economy. And certainly Israel is world-class in terms of the scale of start-ups."
Gray stressed that the company is seeking investments in firms ``who have a strategic fit'' with Intel's program.
In order to compete in the high-speed world of technology, companies ``have been forced to move beyond their core competencies,'' Gray said.
Intel shares closed up 3 1/2 to 119 1/4 Friday.
Lockheed shares should gain ground Monday after announcing that it had signed a $6.4 billion contract with the United Arab Emirates to sell 80 F-15 fighter planes.
"The contract has been signed today and the delivery will be at the end of 2004,'' Obaid al-Kutbi, director of purchasing for the UAE's armed forces, told a news conference.
The UAE said in November that price issues were holding up a signing, originally expected at the end of 1998. The deal was also delayed by a row over the refusal by the United States to hand over source codes and master keys for F-16 weapon systems.
Kutbi said there was an agreement with the U.S. government to purchase the necessary weapons systems with the aircraft.
Lockheed shares closed off 1/8 to 17 Friday.
The maker of television set- top boxes expects profit and sales to increase by at least 10 percent during the next two years, its chief financial officer said. Scientific-Atlanta rose 2 5/16 to 133 at Friday's close.
Wireless Telecom said late Friday that it will buy Boonton Electronics Corp. (BOON), a maker of test equipment for communications products, following their failed attempt to merge last fall.
Under the terms of the agreement, each outstanding share of Boonton common stock will be converted into 0.79 share of Wireless common stock on the closing date, Boonton said.
Wireless Telecom shares closed off 11/16 to 7 1/2 Friday while Boonton shares moved up 3 to 5 1/8.
The purchase is expected to be completed before the end of June and is subject to stockholder approval.
Reuters contributed to this report.>