Weekly Wrap

Thank God for Destiny's Child. Ever since they quit playing "Independent Women Part 1" on the radio, I haven't stopped singing their newest song, Survivor. What a difference a good tune can make. Any time someone asks me how my portfolio is doing I chime back, "I'm a Survivor, I'm gonna make it, I'm a Survivor. I will survive." Then as if to stick a knife in your back they say, "So, how is your book going to sell in this horrible market?" (And yes, they say that in front of other people.) I break into, "I'm a Survivor, I'm not gonna give up, I'm not gonna stop, I'm a survivor." You can imagine why people are saying that I'm bordering on the insane.

It was another tough week in the market. Enough to keep me singing until I see a bull run across my front yard. The Dow was down almost 1%, the Nasdaq down 6.5%, and the S & P down 2.8%. (Oh, and Nick got voted off Survivor. Finally somebody noticed that Amber was on the island and she received two votes to go, but it wasn't enough.)

On Thursday I swore I caught a glimpse of a bull running across my lawn, but by Friday, I realized it was only his left horn. He saw all the snow still covering my grass, spoke to the ground hog living under my elm and he ran back to his buddies. I'm sure he heard nothing of the soft jobs report on Friday, the rising unemployment, the lower than expected tax cuts or that Pacific Gas & Electric (PCG) filed for Chapter 11 bankruptcy. It had to be the snow. This is what I'm telling myself anyway; when my snow is gone, the bull will arrive, bringing both his horns and the whole herd.

If you haven't heard, and it's kind of big news, Pacific Gas & Electric Co., California's largest utility, said on Friday it filed for voluntary bankruptcy protection, citing the failure of the political process to resolve the state's crippling power crisis. It's the third-largest bankruptcy since 1980 by a U.S. company. The utility will keep operating as it goes through the court process. Well, it will keep operating sporadically.

Also in court this week was American Home Products (AHP). On Friday a Texas jury awarded a Texas woman $56.5 million for heart damage she claimed was caused by the diet drugs once used in "fen-phen". I'm so glad I never took the diet cocktail drink made up of fenfluramine and dexfenfluramine (both manufactured by AHP but since taken off the market). I was seriously tempted, until people started dropping over. AHP plans to appeal the decision because they feel that the $12 billion they were required to pay out last year should have been the end of it. Gloria Lopez refused to be part of that settlement and opted to sue the company on her own. She's a survivor, and a rich one at that.

Motorola (MOT) sure wishes they were rich. Rumors were swirling around them on Friday that they were facing liquidity problems. (In other words, they are strapped for cash.) Even though their CEO Bob Growney denied the rumors, the stock dropped 24%. Investors are eagerly waiting for their first quarter earnings announcement next Tuesday to see if there is any truth to the rumors.

Yep, they also announced the unemployment rate on Friday. It climbed a tenth of a percent to 4.3%. Non-farm business cut payrolls by 86,000 jobs, the biggest reduction since November 1991, when payrolls plunged by 94,000 jobs. Looking back through all of the past market wraps, I can probably site the companies responsible for at least half of those RIF's (Reductions in Force. remember last week?).

Radio Shack Corp, (RSH) reported better than expected sales for March, but it's first-quarter (last three months) earnings fell short of Wall Street Estimates. Someone crank up that Radio Shack CD player before everyone can hear me sing all the way to Cincinnati.

Speaking of Cincinnati, Chick Megan and her husband Kevin have a huge spread in the Cincinnati Magazine. Like a five page spread. Megan still looks like Connie Stevens, but a beautiful one. Look for Megan to appear in the local Kroger grocery stores next week to sign the Chicks book. Kroger's (KR), the #1 U.S. grocer was downgraded this week after announcing they will be restating their past earnings. They said it was by "minor amounts", yet the stock fell 7%. No worries. Megan will show up, smile that Connie smile, and all will be well in Kroger-land. Go Megan! Yahoooooo!

You know what I'm going to say next.Yahoo (YHOO) was upgraded by an analyst for the first time since I can remember.UPGRADED! Yahoo closed at $14.81, off it's 52-week low of $11.87. They made three separate announcements this week that were revenue generating that weren't tied to online advertising. Check out Chick Cheryl's recent numbers on the company and latest headlines.

And, a good ole Minnesota company, Best Buy (BBY), said sales of digital products like DVD players and cameras helped push fourth-quarter earnings up 16%. Did you read that? Sales were up!! They also said that their 2002 profits should top estimates. Gotta love that Minnesota. Matter of fact, come see it! Come to the Chick Fest '01! We all can sing that 70's Donna Summer hit together...

First I was afraid, I was petrified

Kept thinkin' I could never live without it by my side
Then I spent so many nights thinking how you did me wrong
And I grew strong
And I learned how to get along

(keep singing but it's illegal if I keep typing up the lyrics...)

I've got all my life to give...
I will survive.

Chick Karin

Closing Market Numbers