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Enron Mail |
Light volume, positive day... yawn, yawn... then after the close: the
biggest non-news news of the millennium - Judge Jackson ruled to break-up Mr. Softee. MSFT sold off initially (after being up small on the day) but is trading up over 2 as I write this (5:45PM NY Time). Gates is defiant and feels that things will go his way on appeal - he might be right but given Mr. Bill's penchant for seeming arrogant it was abit odd to see him as the front man dismissing questions about the naming of the second company as if it were completely out of the realm of possibility. A more tempered, less emotional, less personal response might have been abit more comforting for stockholders - many people feel Mr. Bill's hubris got them into this mess to begin with - look at INTC and CSCO - they know when to tip their hat at Uncle Sam and stay out of the court room. The key is the restrictions which are supposed to go into effect in 90 days - Gates feels very very very very confident that they will be thrown out and Mr. Softee will suffer no harm during the appeal - evidentially many after hours traders share his view. They seem unconcerned of the threat to the new MSFT net strategy - which is to be announced at the end of June. In the broader markets - it was a reversal of yesterday with financials and tech on the rebound (IBM, ORCL, HWP, SUNW, C, BAC, AXP, LEH, BSC, AMTD...) and utilities and energy falling to profit taking (XOM, BPA, RD, WMB, PCG, CPL....). In the CEUT Universe - it was a mixed bag - ITWO* up over 11, MANU* (which was down over 5) closed in the green - Catherine Moore spoke inter-day and said the sellers were wrong..... AMCC* down almost 10, KOPN* down almost 3 1/2, PMCS* down over 2 but SSTI* up over 7.... BRCD* up over 10 1/2, NTAP* & PRCM up over 4... MUSE* up over 4, VRTS* up over 9.... TMPW up over 3... GMH* down over 8 1/2, XMSR* up 1/2, PGTV* down over 6 1/2... IMAN+ up almost 1... In IPO-land GCBF never came but UbiquiTel (UPCS), a wireless service provider associated with Sprint PCS, came at 8 (below original range) and closed down almost 4% - not great but given these markets.... tomorrow is the PPI # - if shows soft on inflation then the feeling is the Fed will not raise in June. MSFT's Ballmer - in Europe - echoes Gates defiant stand at press conf. in Europe. T - backing off on long dist. hikes/ also testing multiple ISPs on cable system in Colo. SNE - delaying US dig. TV debut/ also portable version of Playstation to compete with Gameboy. Ebay* - FBI says we're not targets of probe SUNW - major transition from hardware vendor to hard/software ASP. C.E. Unterberg Towbin's Brian Finnerty on CBS with Brian Gumble - ORCL, SUNW will be helped by MSFT trouble also EFII+ looks very attractive. UrbanFetch - in London beating Kozmo to Europe. Sameday.com now in San Fran. - we're not like Kozmo - we're like Fed Ex. European Union - value added tax on net services. Marc Andreessen - avid user of RIMM* pager - answers 150 messages a day on the road. Kampground of America - largest chain of open air campgrounds is getting wired - outdoor net kiosks. AlohaBob - software let you transfer your computer settings from one box to another. Salon.com - cutting costs by 20%. 13 computer game co. (including Nintendo, SNE) suing sites for selling pirated software. Viacom's Simon and Schuster - publishing 35,000 word book exclusively online - follows CBS News segement - The Class of 2000: A Definative Survey of the New Generation. AOL - will cover Dem and Rep conventions live online. NYSE - quoting 50 stocks in decimals after Labor Day (Sept) - will go from there. Oxygen Media - Ophra Winfrey's networkd for women - major backing, major players - suspends two hallmark shows suddenly - signs of trouble? Beliefnet.com - religion, sprituality and morality site - gets $20 million. NY Post - headline "Broken Windows". Jack Welch - Goverment should never break up companies. DIS former Chairman Joe Roth - new movie and net co. "Revolution Studios" - $3 Billion SNE and Fox major backers. JP Morgan's LabMorgan - electronic finance unit - investing up to $1Billion in e-finance ventures - esp. in Asia. QCOM - signs lic deals with 8 top Chinese manf. - to develop CDMA phones and infrast. INTC and TXI - selling MU shares. WSJ Heard - NYSE trying to develop worldwide exchange (Global Equity Market) - has approached exchanges throughout the world - but not the NASDAQ. VenturCom - soft that turns Windows OS into handling Industrial Apps - (e.g. controlling traffic lights in LA). RePlay TV - giving product to winners of MTV Movie awards - get the stars hooked on interactive TV. MSFT - targeting Palm with ad campaigne for Pocket PC - Palm people say WinCE should be called "wince". Cable and Wireless Optus - provide Australia with ASP infrast. - helped by C&W, CPQ and MSFT alliance. CSCO - watches MSFT and pushes a be very nice to Uncle Sam approach to Gov. relations. Judge throws out XRX lawsuit vs. COMS over PALM. FirstMark Commun. - building broadband wireless network in Europe - raises over $1Billion in equity and loans from blue ribbon backers - KKR, MWD, GS, Paribas, Credit Suisse.... US Election Official - net voting would be big trouble - threat to democracy. Anoto Pen - Bluetooth device - allows you to send handwritten messages via Pen. Nupremis - deliver bus. apps and broadband - CPQ*, Edward P. Bass, Angelo Gordon and others... WebHancer - Web Infrast. tester - gets $13 million. Zaffire - develops optical network services - raises $85 million. Handspring - IPO coming in 2 weeks. Semi Industry Assoc. - chip boom will continue through 2003. C.E. Unterberg Towbin - Jim Poyner marketing in NY/ Karl Motey marketing in Phil. - Balt. There is talk: WCOM for JWEB?/ SWS in play?/ GS for BSC?/ NTN - wants deal with YHOO or AOL?/ The information contained herein is obtained from sources we believe to be reliable but its accuracy and completeness, and that of the opinions based thereon, are not guaranteed. C.E. Unterberg Towbin, or one or more of its partners, may have a position in any of the securities discussed herein. All rights reserved by C.E. Unterberg Towbin. May not be reproduced in whole or in part without prior written authorization. This report is not an offer to sell or solicitation of an offer to buy the securities mentioned herein. *C.E. Unterberg Towbin makes a market in this security and/or has analyst coverage. +C.E. Unterberg Towbin makes a market in this security and has been involved in a recent financing. _____________________________ Bram Towbin C.E. Unterberg Towbin 10 East 50th Street New York NY 10022 Telephone: 212 572 8163 Fax: 212 759 4032 Btowbin@unterberg.com ---------------------------------------------------------------- Pursuant to SEC and NASD requirements, all incoming and outgoing e-mail of C.E. Unterberg, Towbin is subject to review by the Compliance Department. Please note that C.E. Unterberg, Towbin does not allow the use of e-mail to request, authorize or effect the purchase or sale of any security, to send fund transfer instructions, or to effect any other transactions. Any such request, orders or instructions that you send will not be accepted and will not be processed. ================================================================
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