STOCKS TO WATCH: Lucent, Microsoft, Quespasa.com and SDL
Expect the following technology stocks to be among Tuesday's most actively traded issues: Microsoft, Quepasa.com and SDL.
The telecommunications equipment maker is in talks to acquire privately held Chromatis Networks Inc. for up to $5.7 billion in stock, according to a Reuters report which cited unnamed sources. Chromatis Networks makes optical networking equipment.
Lucent also plans to use the Supercomm industry trade show next month to announce a major contract with a European service provider, said a Lucent executive cited by Reuters. Additional details about the contract were not immediately available.
Lucent rose 3 3/4 to 56 before Friday's bell.
After a three-day weekend to mull things over, investors will likely check in with their read on the latest developments in the software giant's antitrust battle with the Justice Department.
Will it be broken up into two companies? Three companies? Will it be broken up at all.
On Friday, the government stuck with its plan to split the company two companies, one for its application software and the other for its operating systems software.
On Friday, it closed off 1/16 to 61 7/16.
Quespasa.com shares will provide some interesting theatre Tuesday after announcing late Friday that it had hired investment banking firm Friedman, Billings, Ramsey & Co. seek out potential buyers or investors.
Company officials said it authorized the firm to consider several options, including strategic alliances, significant equity investments in the company, a merger or the sale of the company or significant portions of its business.
Earlier this month, the Hispanic community Web site said it would take a non-material restructuring charge in its second quarter after slashing more than 30 percent of its workforce.
In its first quarter, Quepasa.com posted a loss of $10.7 million, or 68 cents a share, on sales of $856,585.
Analysts expect it to lose 65 cents a share this quarter and $2.16 a share in the fiscal year. It's not expected to turn a profit until the third quarter of fiscal 2001.
Its shares slipped to a 52-week low of 1 5/16 Friday.
Can SDL maintain the momentum it gained Friday or will profit-taking erode its big run-up?
On Friday, its shares moved up 29 3/4 to 197 3/4 after telling the Street it expects its second-quarter earnings to beat the consensus estimate by at least 24 percent.
Its shares moved up 4 1/16 to 210 13/16 in after-hours trading.>