February 12, 2001
MAINE STOCK TRENDS
Fidelity acquires 11 percent stake in Fairchild Semiconductor
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Fidelity Acquires 11 Percent Stake in Fairchild Semiconductor
FMR Corporation, Ned Johnson III, and Abigail Johnson, better known as Fidelity Investments, filed a 13G/A report with the Securities and Exchange Commission last week. The group has acquired 9,060,100 shares of Fairchild Semiconductor (FCS-$15.29) in recent days. That gives the world's largest money management firm an 11.036 percent ownership stake in one of Maine's largest publicly traded companies. The ownership of one investment company alone, Fidelity Fund, amounted to 4,540,700 shares or 5.531% of all Fairchild Class A Common Stock outstanding.
In its filing with the S.E.C., Fidelity stated that does not have any immediate plans to make major changes in the company or its management.
This is not the first time that the Boston money management company has filed a 13G report for its ownership in a Maine company. It is, however, the first time in recent memory that Fidelity has acquired a ten percent or more stake in one of Maine's largest companies.
Fourth quarter and year end results continued to flow in last week for local companies. I-Many (IMNY-$19.13), ImmuCell (ICCC-$3), Bangor Hydro Electric Company (BGR-$25.87), and First Coastal (FCME-$11.38) all reported last week.
Beating estimates in this kind of market usually means a higher stock price. Not so at I-Many last week. The company reported a net loss of $0.06 a share. The IBES consensus called for a fourth quarter loss of $0.09. So, beating the expectations by $.03 per share should have meant a higher stock price from happy investors. Although the mood on the conference call was congratulatory, the stock price at I-Many fell 8.67 percent last week. Of course, there were few complaints from stockholders. I-many's stock price jumped 48.25 percent during the week prior to the earnings release.
The consensus estimate for the year 2001 now calls for a profit of $0.08. As recently as this past December, the Street expected a full year loss for the current year.
For ImmuCell, for which there were no street estimates, the stock price moved to a new year recovery high, closing up 11.63 percent for the week. The company, which is not widely followed, announced net profit before taxes of $476,000 versus $551,000. Product revenues increased by 16 percent to $5,636,000. The company reported a non-cash tax benefit of $1.4 million, which caused full year 2000 diluted earnings per share to increase to $0.67 versus $0.22 per share in 1999.
Even though operating earnings were lower at ImmuCell, this was the second consecutive year of earnings, which were accompanied by double-digit revenue growth. The biotech company reported a year-end backlog of $750,000 for its First Defense product versus no such backlog in the prior year. Construction is underway for an addition to the corporate headquarters in Portland to accommodate increased demand for its products.
Bangor Hydro reported full year 2000 earnings of $1.47 versus $2.35 in the full year 1999. Fourth quarter earnings per share were $0.25 versus $0.74 in 1999. Comparisons were difficult due to one time benefits of $0.52 per share in 1999 as well as numerous one time expenses in 2000, including $0.25 per share in merger related expenses in conjunction with the company's pending merger with Nova Scotia's Emera Corporation.
After the market closed on Friday, First Coastal reported lower earnings for the year 2000. Last year's earnings were boosted by the reversal of a loan-loan provision and were negatively impacted by costs associated with the opening of a new headquarters building in Portland as well as a new bank branch in Falmouth. 1999's results reflect a gain from the sale of its former Kennebunk branch. Diluted earnings per share for the full year 2000 came in at $0.94 versus $1.64 in 1999.
First Coastal's assets grew from $190.6 million at year-end 1999 to $219.1 as of December 31, 2000.
Intelligent Controls (ITC-$1.50) has not yet released its year-end results, but the stock is performing well. INCON stock, one of Maine's more illiquid securities, only traded for two days last week and then only for a total of 300 shares. But, the stock moved up 14.5 percent last week and is now up 50 percent from its year-end 2000 close.
Looking ahead for this week, Portland disability insurer, UNUMProvident UNM-$27.89), reports fourth quarter and year-end 2000 earnings. Results are due out after the market close on Monday, the 12th. The consensus according to IBES, calls for $0.61 for fourth quarter 2000 and $2.37 for the full year just ended. Analysts will be looking at December and January renewals for indications for the year ahead. Much of the company's business renews for a year at a time. Those months are key renewal periods for the industry. A conference call follows on Tuesday morning. To listen over the Internet, click here: Q3 2000 UNUMProvident Earnings Conference Call . After trading around $30 per share the past two weeks, the stock fell 6.0 percent last week ahead of the fourth quarter release.
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