Robertson Stephens Daily Growth Stock Update on SYK, ARBA, AGM, KLIC, LSCC, S, SIVB, BSX, ISRG, MRK

Apr 23, 2001, 01:00 ET from Robertson Stephens, Inc.

    SAN FRANCISCO, April 23 /PRNewswire Interactive News Release/ -- The
 following is being issued by Robertson Stephens, Inc.:
 
     Rating Change:
 
     Stryker Corporation
     (NYSE:   SYK) $56.59
     Downgrading to Long-Term Attractive from Buy
 
     Wade King, Medical Technologies
     "We believe that Stryker is fully valued near-term -- as such, we are
     lowering our rating to LTA," said King. "The stock has now surpassed our
     year-end price target, based on 35x our 2002 EPS estimate of $1.61. Until
     recently, on a historical basis, shares of Stryker have traded at or just
     above the multiple of the overall S&P 500, as shown in the attached
     figures. Recently, shares of Stryker have diverged from this trend. At
     this time, Stryker's P/E multiple is approximately 80% greater than that
     of the S&P 500. While we firmly believe that Stryker deserves a premium
     multiple, we consider the shares to be near full valuation at this time,
     especially ahead of the seasonally slow summer quarter. Hence, we are
     lowering our rating on shares of Stryker to LTA from Buy, based solely on
     valuation considerations."
 
     Estimate Changes:
 
     Ariba, Inc.
     (Nasdaq:   ARBA) $7.76
     Market Performer
     F2001E EPS: ($0.39), down from ($0.35)
     F2002E EPS: $0.03, up from $0.01
 
     Eric Upin, Business-to-Business eCommerce
     "In line with the company's pre-release earlier this month, Ariba
     experienced a significant Q2:01 shortfall -- reporting $90.7 million in
     revenue and cash EPS estimate of ($0.20)," said Upin. "The company missed
     our recently lowered estimates by 43% on the top-line and by $0.23 on the
     bottom line. Even though the company provided very limited future
     guidance, we are making some adjustments to our model to reflect the
     contribution of maintenance revenue moving forward and an expected new
     cost structure. Ariba attributed the Q2:01 shortfall to weakness in all
     parts of the business and all geographies (other than Japan). While
     unquestionably a global slowdown played a role in the company's major
     shortfall, we believe the company is also being impacted by a slowdown in
     its core markets. At this point in time, we are maintaining our Market
     Performer rating on the stock."
 
     Farmer Mac
     (NYSE:   AGM) $24.86
     Long-Term Attractive
     2001E EPS: $1.15, up from $1.10
     2002E EPS: $1.34, New
 
     Jordan Hymowitz, eCredit & Lending/I-Auto
     "Farmer Mac reported 1Q01 core EPS of $0.27, representing a 29% increase
     year-over-year, exceeding our estimate by $0.01," said Hymowitz. "We are
     increasing our 2001 EPS $0.05 to $1.15, and we are initiating a 2002 EPS
     estimate of $1.34. Portfolio growth was impressive, equity returns trend
     up, and credit quality deteriorated slightly. New risk-based capital
     requirements are established by the Farm Credit Administration. The
     purpose of the standard is to establish the minimum capital necessary for
     Farmer Mac to remain solvent during a 10-year period of credit and
     interest rate stress. As of March 31, 2001, Farmer Mac's regulatory
     capital was $104.8M. While we believe that Farmer Mac is in full
     compliance with the new standard, the new requirement is extremely complex
     and we believe the implications are not fully understood at this time. It
     is our view that it will be incumbent upon the FCA to balance concerns
     about capital adequacy against Farmer Mac's mandate to insure liquidity in
     the farm mortgage market and equity investors' needs to achieve
     appropriate risk-adjusted returns."
 
     Kulicke and Soffa Industries, Inc.
     (Nasdaq:   KLIC) $16.96
     Long-Term Attractive
     F2001E EPS: ($0.27), up from ($0.35)
     F2002E EPS: $0.20, New
 
     Sue Billat, Semiconductor Equipment/Foundries
     "Despite reporting revenues in line with our estimates, K&S reported
     FQ2:01 EPS of ($0.17) that exceeded our estimate of ($0.21) due to higher
     than anticipated gross margin," said Billat. "Excluding goodwill, the
     company reported an EPS of ($0.10). Although we are lowering our FQ3 EPS
     estimate to ($0.16) from ($0.12) on revenues of $123.0 million (formerly
     $135.0 million), we are raising our estimate for F2001 to ($0.27) from
     ($0.35) on revenues of $558.9 million (formerly $585.4 million) to reflect
     the company's cost-reduction programs and its ability to hold gross
     margins. We are also introducing our F2002 EPS estimate of $0.20 on
     revenues of $650 million. At 35.3x our CY02 estimates, KLIC is trading at
     a premium to companies in the front end. As we do not expect major
     technology drivers in the wirebonder segment, we believe the company's
     near-term growth rate or profitability levels are unlikely to outperform
     those in the front end. Accordingly, we are maintaining our Long-Term
     Attractive rating on KLIC."
 
     Lattice Semiconductor Corporation
     (Nasdaq:   LSCC) $25.18
     Long-Term Attractive
     F2001E EBG: $0.74, down from $0.91
     F2002E EBG: $0.81, New
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "Lattice reported 1Q01 EPS of $0.24, in line with our estimate and below
     the consensus estimate of $0.25," said Rothdeutsch. "Revenues of $111.1
     million were down 26% QoQ, in line with our $113.1 million estimate and
     below the company's revised guidance of a 20% decline. As a result of the
     ongoing inventory correction and weak end market demand, we are lowering
     our F2001 revenue and EPS estimates from $635.1 million and $0.91 to
     $368.7 million and $0.74, respectively.  We are introducing our F2002
     revenue and EPS estimates of $405.8 million and $0.81, respectively. We
     remain cautious on the near-term prospects for Lattice pending better
     visibility into the rate of channel inventory reduction and resumption of
     demand from the company's core communications end markets.  We are
     maintaining our LTA rating on shares of LSCC."
 
     Sears Roebuck & Co.
     (NYSE:   S) $34.65
     Long-Term Attractive
     2001E EPS: $4.15, down from $4.90
     2002E EPS: $4.55, New
 
     Bill Dreher, Broadline Retailing: Discount & Department Stores
     Janet Joseph Kloppenburg, Specialty Retailing/Apparel Manufacturers
     "Sears analysts meeting was straightforward and sweeping in scope, but
     lacking key details on softlines," said Dreher and Kloppenburg. "We
     believe it could be a year or more before a chief merchant is named and
     their new plans are implemented.  This also represents a bottleneck for
     supply chain initiatives, logistical infrastructure rationalization, as
     well as Marketing and Promotional strategy, in our view.   We believe
     these items are critical to Sears' long-term success.  The four Great
     Indoors stores are doing well, but we look for results from a larger
     sample before a full-scale rollout of this latest off the mall concept
     begins. The two stores in the comp base posted a very disappointing
     increase of just 2.0% in 1Q01, versus a high of 29% a year earlier, which
     makes us concerned.  We believe the economic returns and profitability
     outlook presented at the meeting could prove overly optimistic in a more
     modest growth economy.  We expect Q2:01 EPS to decline to $0.90 vs. $1.11
     last year. Management revised their earnings guidance for 2001, and now
     expects no growth, vs. their original guidance of 8%-11% EPS growth.  We
     look for $4.15 this year and $4.55 next year.  We believe Sears' board
     will give Mr. Lacy sufficient time to perform another turnaround. We
     continue to rate Sears shares a Long-Term Attractive."
 
     Silicon Valley Bancshares
     (Nasdaq:   SIVB) $23.71
     Long-Term Attractive
     2001E EPS: $2.40, down from $2.65
 
     Jordan Hymowitz, eCredit & Lending/I-auto
     "Silicon Valley Bancshares reported March quarter core earnings of $0.62
     per share, $0.02 below our estimate," said Hymowitz.  "SIVB reported EPS
     of $0.65 excluding $2.2 million ($0.03 per share) in non-interest expenses
     related to the erroneous overpayment of principal of money market funds
     (because of systems error).  We believe this expense should be included in
     core earnings and, therefore, we believe SIVB missed our $0.64 estimate by
     $0.02 in the quarter.  We are lowering our 2001 EPS estimate to $2.40
     (-$0.25) and initiating our 2002 EPS estimate of $2.60. We continue to
     rate Silicon Valley Bancshares Long-Term Attractive and believe there is
     not significant enough earnings visibility to recommend the stock despite
     its dominant franchise and superior profitability."
 
     Comments:
 
     Boston Scientific Corporation
     (NYSE:   BSX) $15.94
     Long-Term Attractive
 
     Wade King, Medical Technologies
     "Late Friday, Boston Scientific announced that it would discontinue
     further enrollment in the SCORE clinical trial," said King. "The SCORE
     trial was initiated by Quanam Medical, which BSX acquired in February.
     This trial was designed to compare the safety and efficacy of Quanam's
     drug-coated stent versus a bare metal stent in de novo lesions. The trial
     was halted several months ago, due to an unacceptable rate of major
     cardiac adverse (MACE) events. Since BSX's acquisition of Quanam, a panel
     of clinicians has been evaluating the trial's results to determine whether
     to continue enrollment of the SCORE trial. The panel concluded that the
     MACE rate was related to multiple trial protocol violations. BSX still
     plans to collect follow-up data on those patients who have already
     received stents in order to evaluate the drug-coated stent technology for
     the longer term. Boston Scientific is scheduled to report its full Q1'01
     results on Wednesday 4/25 after the market close. During its Analyst Day
     Meeting, BSX announced preliminary revenue results of $654M. Our EPS
     estimate for the quarter is $0.21. In addition to reviewing its financial
     results, we believe that many of BSX's recent issues (such as Medinol and
     the Quanam trial) will be discussed on the conference call."
 
     Intuitive Surgical, Inc.
     (Nasdaq:   ISRG) $5.25
     Buy
 
     Wade King, Medical Technologies
     "Intuitive Surgical is schedule to report its Q1'01 results on Tuesday,
     4/24 after the market close," said King. "We estimate that 12 systems were
     placed during Q1'01. Intuitive is trading at only 2x our 2002 revenue
     estimate of $87M.  Our near-term price target for the shares of Intuitive
     is $11 based on 30x our 2003 EPS estimate of $0.43, discounted 25% for one
     year. This offers investors the opportunity for over 100% ROI. We believe
     Intuitive is an attractive investment opportunity in the leader in
     advanced robotics applied to minimally invasive surgery. Our rating on the
     shares of Intuitive is Buy."
 
     Merck & Co., Inc.
     (NYSE:   MRK) $78.27
     Market Performer
 
     Robert Hazlett, Large Capitalization/Specialty Pharmaceuticals
     "Merck reported 1Q01 EPS of $0.71, an increase of 13% year-over-year, a
     penny ahead of our estimate and in line with that of consensus," said
     Hazlett. "We are maintaining our full-year EPS estimates of $3.15, by
     lowering our 2Q01 EPS estimates by a penny to $0.79. We believe that a
     number of patent expirations over the next few years, coupled with revenue
     growth increasingly driven by Medco operations will likely continue to
     significantly pressure margins, resulting in estimated Merck EPS growth
     below drug group average of 15%.  We continue to rate MRK shares Market
     Performer."
 
     Industry Updates:
 
     Indiana Gaming Update
 
     Harry Curtis, Gaming & Lodging
     "Gaming win at Indiana's ten riverboat casinos increased 10.3% in March to
     $170 million from $154 million a year ago," said Curtis.  "As in
     Louisiana, Missouri and Illinois, March results were better than we had
     anticipated, despite weakness in the U.S. economy. Same store revenue in
     the state increased 4%. State-wide gaming revenue grew by 8.3% for the
     first quarter to $466 million.  At its current pace, gaming win for the
     year will reach $1.83 billion versus $1.69 billion in 2000."
 
 
     Next Generation Network
 
     Paul Johnson, Communications/Networking
     "The key insight of our analysis of the current state of the inventory
     cycle plaguing the networking equipment vendors and component suppliers
     lies in a slingshot effect that may materialize in the final two quarters
     of 2001," said Johnson. "Our simple supply-chain analysis, in conjunction
     with our carrier spending estimates, calls for positive revenue growth for
     both equipment and component vendors in the September and December
     quarters -- making it possible to see positive sequential growth in the
     third quarter and upward of 28% sequential revenue growth in the fourth
     quarter of 2001 for networking-equipment vendors."
 
     Q1:01 Real Estate Equities Earnings Preview & Investment Outlook
 
     Jay Leupp, REITs/REOCs/Real Estate Services
     Paul Penney, REITs/REOCs/Real Estate Services
     "For the Q1:01 earnings season, we are expecting mixed results and
     guidance," said Leupp and Penney. "The conflicting influences of a slowing
     economy and falling interest rates are likely to drive a variety of views
     on the outlook for REIT earnings in 2001 and, more importantly, in 2002.
     For the Q1:01 REIT earnings reports, we are predicting weighted average
     sector same store net operating income(noi) growth of 4.3%, and Q1:01 over
     Q1:00 FFO growth of 8.2%.  We expect the apartment and office REITs to
     post sector leading same store NOI growth of 5.2% and 5.0%, respectively,
     and Q1:01 over Q1:00 FFO growth of 9.6% and 9.8%, respectively."
 
     Unless otherwise noted, prices are as of Friday, April 20, 2001.
 
     Robertson Stephens maintains a market in the shares of Ariba, Kulicke and
 Soffa, Lattice Semiconductor, Silicon Valley Bancshares and Intuitive
 Surgical, and was a managing or co-managing underwriter for or has privately
 place securities of Kulicke and Soffa, and Intuitive Surgical within the past
 three years.
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SOURCE Robertson Stephens, Inc.
    SAN FRANCISCO, April 23 /PRNewswire Interactive News Release/ -- The
 following is being issued by Robertson Stephens, Inc.:
 
     Rating Change:
 
     Stryker Corporation
     (NYSE:   SYK) $56.59
     Downgrading to Long-Term Attractive from Buy
 
     Wade King, Medical Technologies
     "We believe that Stryker is fully valued near-term -- as such, we are
     lowering our rating to LTA," said King. "The stock has now surpassed our
     year-end price target, based on 35x our 2002 EPS estimate of $1.61. Until
     recently, on a historical basis, shares of Stryker have traded at or just
     above the multiple of the overall S&P 500, as shown in the attached
     figures. Recently, shares of Stryker have diverged from this trend. At
     this time, Stryker's P/E multiple is approximately 80% greater than that
     of the S&P 500. While we firmly believe that Stryker deserves a premium
     multiple, we consider the shares to be near full valuation at this time,
     especially ahead of the seasonally slow summer quarter. Hence, we are
     lowering our rating on shares of Stryker to LTA from Buy, based solely on
     valuation considerations."
 
     Estimate Changes:
 
     Ariba, Inc.
     (Nasdaq:   ARBA) $7.76
     Market Performer
     F2001E EPS: ($0.39), down from ($0.35)
     F2002E EPS: $0.03, up from $0.01
 
     Eric Upin, Business-to-Business eCommerce
     "In line with the company's pre-release earlier this month, Ariba
     experienced a significant Q2:01 shortfall -- reporting $90.7 million in
     revenue and cash EPS estimate of ($0.20)," said Upin. "The company missed
     our recently lowered estimates by 43% on the top-line and by $0.23 on the
     bottom line. Even though the company provided very limited future
     guidance, we are making some adjustments to our model to reflect the
     contribution of maintenance revenue moving forward and an expected new
     cost structure. Ariba attributed the Q2:01 shortfall to weakness in all
     parts of the business and all geographies (other than Japan). While
     unquestionably a global slowdown played a role in the company's major
     shortfall, we believe the company is also being impacted by a slowdown in
     its core markets. At this point in time, we are maintaining our Market
     Performer rating on the stock."
 
     Farmer Mac
     (NYSE:   AGM) $24.86
     Long-Term Attractive
     2001E EPS: $1.15, up from $1.10
     2002E EPS: $1.34, New
 
     Jordan Hymowitz, eCredit & Lending/I-Auto
     "Farmer Mac reported 1Q01 core EPS of $0.27, representing a 29% increase
     year-over-year, exceeding our estimate by $0.01," said Hymowitz. "We are
     increasing our 2001 EPS $0.05 to $1.15, and we are initiating a 2002 EPS
     estimate of $1.34. Portfolio growth was impressive, equity returns trend
     up, and credit quality deteriorated slightly. New risk-based capital
     requirements are established by the Farm Credit Administration. The
     purpose of the standard is to establish the minimum capital necessary for
     Farmer Mac to remain solvent during a 10-year period of credit and
     interest rate stress. As of March 31, 2001, Farmer Mac's regulatory
     capital was $104.8M. While we believe that Farmer Mac is in full
     compliance with the new standard, the new requirement is extremely complex
     and we believe the implications are not fully understood at this time. It
     is our view that it will be incumbent upon the FCA to balance concerns
     about capital adequacy against Farmer Mac's mandate to insure liquidity in
     the farm mortgage market and equity investors' needs to achieve
     appropriate risk-adjusted returns."
 
     Kulicke and Soffa Industries, Inc.
     (Nasdaq:   KLIC) $16.96
     Long-Term Attractive
     F2001E EPS: ($0.27), up from ($0.35)
     F2002E EPS: $0.20, New
 
     Sue Billat, Semiconductor Equipment/Foundries
     "Despite reporting revenues in line with our estimates, K&S reported
     FQ2:01 EPS of ($0.17) that exceeded our estimate of ($0.21) due to higher
     than anticipated gross margin," said Billat. "Excluding goodwill, the
     company reported an EPS of ($0.10). Although we are lowering our FQ3 EPS
     estimate to ($0.16) from ($0.12) on revenues of $123.0 million (formerly
     $135.0 million), we are raising our estimate for F2001 to ($0.27) from
     ($0.35) on revenues of $558.9 million (formerly $585.4 million) to reflect
     the company's cost-reduction programs and its ability to hold gross
     margins. We are also introducing our F2002 EPS estimate of $0.20 on
     revenues of $650 million. At 35.3x our CY02 estimates, KLIC is trading at
     a premium to companies in the front end. As we do not expect major
     technology drivers in the wirebonder segment, we believe the company's
     near-term growth rate or profitability levels are unlikely to outperform
     those in the front end. Accordingly, we are maintaining our Long-Term
     Attractive rating on KLIC."
 
     Lattice Semiconductor Corporation
     (Nasdaq:   LSCC) $25.18
     Long-Term Attractive
     F2001E EBG: $0.74, down from $0.91
     F2002E EBG: $0.81, New
 
     Eric Rothdeutsch, Semiconductors/Computer Hardware
     "Lattice reported 1Q01 EPS of $0.24, in line with our estimate and below
     the consensus estimate of $0.25," said Rothdeutsch. "Revenues of $111.1
     million were down 26% QoQ, in line with our $113.1 million estimate and
     below the company's revised guidance of a 20% decline. As a result of the
     ongoing inventory correction and weak end market demand, we are lowering
     our F2001 revenue and EPS estimates from $635.1 million and $0.91 to
     $368.7 million and $0.74, respectively.  We are introducing our F2002
     revenue and EPS estimates of $405.8 million and $0.81, respectively. We
     remain cautious on the near-term prospects for Lattice pending better
     visibility into the rate of channel inventory reduction and resumption of
     demand from the company's core communications end markets.  We are
     maintaining our LTA rating on shares of LSCC."
 
     Sears Roebuck & Co.
     (NYSE:   S) $34.65
     Long-Term Attractive
     2001E EPS: $4.15, down from $4.90
     2002E EPS: $4.55, New
 
     Bill Dreher, Broadline Retailing: Discount & Department Stores
     Janet Joseph Kloppenburg, Specialty Retailing/Apparel Manufacturers
     "Sears analysts meeting was straightforward and sweeping in scope, but
     lacking key details on softlines," said Dreher and Kloppenburg. "We
     believe it could be a year or more before a chief merchant is named and
     their new plans are implemented.  This also represents a bottleneck for
     supply chain initiatives, logistical infrastructure rationalization, as
     well as Marketing and Promotional strategy, in our view.   We believe
     these items are critical to Sears' long-term success.  The four Great
     Indoors stores are doing well, but we look for results from a larger
     sample before a full-scale rollout of this latest off the mall concept
     begins. The two stores in the comp base posted a very disappointing
     increase of just 2.0% in 1Q01, versus a high of 29% a year earlier, which
     makes us concerned.  We believe the economic returns and profitability
     outlook presented at the meeting could prove overly optimistic in a more
     modest growth economy.  We expect Q2:01 EPS to decline to $0.90 vs. $1.11
     last year. Management revised their earnings guidance for 2001, and now
     expects no growth, vs. their original guidance of 8%-11% EPS growth.  We
     look for $4.15 this year and $4.55 next year.  We believe Sears' board
     will give Mr. Lacy sufficient time to perform another turnaround. We
     continue to rate Sears shares a Long-Term Attractive."
 
     Silicon Valley Bancshares
     (Nasdaq:   SIVB) $23.71
     Long-Term Attractive
     2001E EPS: $2.40, down from $2.65
 
     Jordan Hymowitz, eCredit & Lending/I-auto
     "Silicon Valley Bancshares reported March quarter core earnings of $0.62
     per share, $0.02 below our estimate," said Hymowitz.  "SIVB reported EPS
     of $0.65 excluding $2.2 million ($0.03 per share) in non-interest expenses
     related to the erroneous overpayment of principal of money market funds
     (because of systems error).  We believe this expense should be included in
     core earnings and, therefore, we believe SIVB missed our $0.64 estimate by
     $0.02 in the quarter.  We are lowering our 2001 EPS estimate to $2.40
     (-$0.25) and initiating our 2002 EPS estimate of $2.60. We continue to
     rate Silicon Valley Bancshares Long-Term Attractive and believe there is
     not significant enough earnings visibility to recommend the stock despite
     its dominant franchise and superior profitability."
 
     Comments:
 
     Boston Scientific Corporation
     (NYSE:   BSX) $15.94
     Long-Term Attractive
 
     Wade King, Medical Technologies
     "Late Friday, Boston Scientific announced that it would discontinue
     further enrollment in the SCORE clinical trial," said King. "The SCORE
     trial was initiated by Quanam Medical, which BSX acquired in February.
     This trial was designed to compare the safety and efficacy of Quanam's
     drug-coated stent versus a bare metal stent in de novo lesions. The trial
     was halted several months ago, due to an unacceptable rate of major
     cardiac adverse (MACE) events. Since BSX's acquisition of Quanam, a panel
     of clinicians has been evaluating the trial's results to determine whether
     to continue enrollment of the SCORE trial. The panel concluded that the
     MACE rate was related to multiple trial protocol violations. BSX still
     plans to collect follow-up data on those patients who have already
     received stents in order to evaluate the drug-coated stent technology for
     the longer term. Boston Scientific is scheduled to report its full Q1'01
     results on Wednesday 4/25 after the market close. During its Analyst Day
     Meeting, BSX announced preliminary revenue results of $654M. Our EPS
     estimate for the quarter is $0.21. In addition to reviewing its financial
     results, we believe that many of BSX's recent issues (such as Medinol and
     the Quanam trial) will be discussed on the conference call."
 
     Intuitive Surgical, Inc.
     (Nasdaq:   ISRG) $5.25
     Buy
 
     Wade King, Medical Technologies
     "Intuitive Surgical is schedule to report its Q1'01 results on Tuesday,
     4/24 after the market close," said King. "We estimate that 12 systems were
     placed during Q1'01. Intuitive is trading at only 2x our 2002 revenue
     estimate of $87M.  Our near-term price target for the shares of Intuitive
     is $11 based on 30x our 2003 EPS estimate of $0.43, discounted 25% for one
     year. This offers investors the opportunity for over 100% ROI. We believe
     Intuitive is an attractive investment opportunity in the leader in
     advanced robotics applied to minimally invasive surgery. Our rating on the
     shares of Intuitive is Buy."
 
     Merck & Co., Inc.
     (NYSE:   MRK) $78.27
     Market Performer
 
     Robert Hazlett, Large Capitalization/Specialty Pharmaceuticals
     "Merck reported 1Q01 EPS of $0.71, an increase of 13% year-over-year, a
     penny ahead of our estimate and in line with that of consensus," said
     Hazlett. "We are maintaining our full-year EPS estimates of $3.15, by
     lowering our 2Q01 EPS estimates by a penny to $0.79. We believe that a
     number of patent expirations over the next few years, coupled with revenue
     growth increasingly driven by Medco operations will likely continue to
     significantly pressure margins, resulting in estimated Merck EPS growth
     below drug group average of 15%.  We continue to rate MRK shares Market
     Performer."
 
     Industry Updates:
 
     Indiana Gaming Update
 
     Harry Curtis, Gaming & Lodging
     "Gaming win at Indiana's ten riverboat casinos increased 10.3% in March to
     $170 million from $154 million a year ago," said Curtis.  "As in
     Louisiana, Missouri and Illinois, March results were better than we had
     anticipated, despite weakness in the U.S. economy. Same store revenue in
     the state increased 4%. State-wide gaming revenue grew by 8.3% for the
     first quarter to $466 million.  At its current pace, gaming win for the
     year will reach $1.83 billion versus $1.69 billion in 2000."
 
 
     Next Generation Network
 
     Paul Johnson, Communications/Networking
     "The key insight of our analysis of the current state of the inventory
     cycle plaguing the networking equipment vendors and component suppliers
     lies in a slingshot effect that may materialize in the final two quarters
     of 2001," said Johnson. "Our simple supply-chain analysis, in conjunction
     with our carrier spending estimates, calls for positive revenue growth for
     both equipment and component vendors in the September and December
     quarters -- making it possible to see positive sequential growth in the
     third quarter and upward of 28% sequential revenue growth in the fourth
     quarter of 2001 for networking-equipment vendors."
 
     Q1:01 Real Estate Equities Earnings Preview & Investment Outlook
 
     Jay Leupp, REITs/REOCs/Real Estate Services
     Paul Penney, REITs/REOCs/Real Estate Services
     "For the Q1:01 earnings season, we are expecting mixed results and
     guidance," said Leupp and Penney. "The conflicting influences of a slowing
     economy and falling interest rates are likely to drive a variety of views
     on the outlook for REIT earnings in 2001 and, more importantly, in 2002.
     For the Q1:01 REIT earnings reports, we are predicting weighted average
     sector same store net operating income(noi) growth of 4.3%, and Q1:01 over
     Q1:00 FFO growth of 8.2%.  We expect the apartment and office REITs to
     post sector leading same store NOI growth of 5.2% and 5.0%, respectively,
     and Q1:01 over Q1:00 FFO growth of 9.6% and 9.8%, respectively."
 
     Unless otherwise noted, prices are as of Friday, April 20, 2001.
 
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