January 8, 2001

MAINE STOCK TRENDS
Is the Great Internet Sell-off over?

by BRAD MCCURTAIN

Copyright © 2001 Blethen Maine Newspapers Inc.

 

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Updated prices for 37 Maine stocks are listed on our stocks page.

  Recently in MAINE STOCK TRENDS:

Maine stocks outpace the averages in 2000 (July 10, 2000)



Complete index
  Maine stocks in this column:
  • I Many
  • Acadia Group
  • IDEXX Labs
  • Banknorth Group
  • Hannaford Bros. Co.
  • CMP Group
  • Brunswick Technologies
    •   Charts:
  • IDEXX Labs
  • Hannaford Bros. Co.
  • Delhaize America
    • Maine has a new publicly traded company this week, I Many (IMNY-12). I Many went public on Thursday at a price of $9 and finished the week up 38.7% at $12.48 per share. That was the fifth-best performing of 11 new IPOs during the week ending July 14. Of course, the stock was priced by underwriters at the low end of its expected $9-11 range. Nonetheless, IMNY wins, hands down, as the top-performing stock for the week.

    The 7.5 million share offering brought gross proceeds of $67.5 million to the Portland, Maine-based company. The company provides Internet-based solutions and related professional services that allow its clients to negotiate and manage complex contract purchasing arrangements and to facilitate business-to-business e-commerce in health care and other industries.

    Just when shareholders of another company, Acadia Group (ACNS-1 7/8), thought that things couldn't get any worse, they found their stock worth 6.25% less than at the beginning of this week. The Lewiston medical practice management company saw its stock price plummet 58% over the first six months of 2000. The stock slid an additional 20% last week.

    A couple of Maine companies plan to release their Q2 results during the week of July 17. These include IDEXX Labs (IDXX-21) on Tuesday, July 18, at 10:30 AM. Street estimates for IDEXX are in the $.25-.26 per share range versus $.20 in the comparable period a year ago.

    Banknorth Group (BKNG-16) releases its Q2 results Wednesday morning, July 19. Estimates are for $.40 a share versus $.60 in the comparable quarter last year. The Street is looking for about $1.65 a share for full year earnings for Maine's largest bank holding company.

    Hannaford Bros. Co. (HRD-73 3/4) extended the tentative deadline for submitting election forms in connection with the pending acquisition of Hannaford by Delhaize America. Inc. (DZA-15 7/8). Hannaford expects that the acquisition will be completed by the end of this month.

    DZA, like many supermarket stocks, has been a poor performer over the past year or so. DZA is actually a new stock which began trading last September; previously the company was known as Food Lion. And, while DZA with Hannaford will certainly be a different company, it bears great resemblance to the former Food Lion, which traded as high as $37.73 over the past year or so. With the pending acquisition of Hannaford, the principal owner of Delhaize determined that it was best to change the name of the parent company.

    Current estimates are for DZA to earn $1.82 a share this year. That puts the stock at less than 9 times current year expected earnings. It's trading at just 8 times next year's estimate of $1.98. Historically, those are pretty reasonable price/earnings ratios for the industry. For example, according to Multex.com, the S&P 500 is presently selling at 39.05 times earnings. The supermarket industry is trading at 28.67 times earnings.

    Indiscriminate selling before a merger has the effect of driving down stock prices of securities such as Delhaize America to new lows.

    CMP Group (CTP-29 3/16) announced that it is still awaiting SEC approval of the merger, something that it expects will occur this summer. The company also announced that the July dividend will be paid in cash, even for those shareholders who participate in the dividend reinvestment plan, given that the dividend reinvestment plan was terminated this past May in anticipation of the merger.

    Finally, we say goodbye to Brunswick Technologies (BTIC-8 15/32). CertainTeed, which took control of BTIC in June, filed a Form 15 with the SEC to terminate the registration of the stock. The stock no longer trades. BTIC is in the process of being acquired by CertainTeed Corporation. Some shareholders believe that the $8.50 being offered by CertainTeed is an inadequate price for all of the value behind Brunswick Technologies, and are filing an objection to the acquisition.

    Brad McCurtain is president of Maine Securities Corporation. Maine Securities Corporation is an investment firm specializing in Maine's securities. From time to time, the corporation, its employees, and its clients may buy, hold, and/or sell positions in companies mentioned herein. As a regulated securities broker/dealer, the company and its employees are required to abide by all securities regulations at all times when communicating with the public. Brad McCurtain may be reached at info@MaineSec.com. Web site: http://www.MaineSec.com


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