STOCKS TO WATCH: Emulex, Healtheon/WebMD and Palm
Expect these technology stocks to be among Wednesday's most actively traded issues: Emulex, Healtheon/WebMD and Palm.
After taking a pounding Tuesday, it wouldn't be a bit surprising if the maker of fibre channel host bus adapters and hubs makes a rousing comeback Wednesday.
Emulex shares fell 57 9/64, or 26 percent, to 160 59/64 after Morgan Keegan analyst Robert Montague cut the stock from an "outperform" recommendation to a "market perform."
Other analysts are too worried about the stock. Before Tuesday's downgrade, all six analysts following the stock rated it either a "buy" or "strong buy."
After its recent surge from $100 to $225 a share in less than two months, don't be surprised if some bargain hunters swoop down on Emulex Wednesday morning.
The online health information provider should be worth watching Wednesday after Patricia Fili-Krushel resigned her post as president of the ABC Television Network to become its new CEO.
Atlanta-based Healtheon/WebMD, an Internet portal that links consumers to doctors and other health service providers, said Fili-Krushel's appointment is effective April 10, and she will report directly to Chief Executive Officer Jeff Arnold.
At the company, she will set the strategic direction for its consumer offerings and programming, including its online consumer portal WebMD Health and the Health Network.
Its shares closed off 2 1/8 to 32 1/16 Tuesday.
Palm topped analysts' estimates in its third quarter Tuesday, earning $15.5 million, or 3 cents a share, on sales of $272.3 million.
Its shares closed off 11/16 to 54 13/16 ahead of the earnings report.
However, company officials said it expects slower growth in the near future.
First Call consensus expected the maker of handheld computing devices to earn 2 cents a share in the quarter.
Gross margins of 43.6 percent represented a decline year-over-year but an improvement from the second quarter.
The office equipment giant will announce later this week plans to cut 3,000-5,000 jobs, or up to 5.3 percent of its work force, according to sources cited in Wednesday's Wall Street Journal.
The company is also expected to a take a pretax, first-quarter charge of $600 million to $900 million by the end of Friday to boost productivity and decrease costs even more, analysts said.