High-flying Qualcomm splits; MedTech’s delays hurt stock C/NET Investor

The Federal Open Market Committee decided against another rate hike this year, a decision widely expected on Wall Street. The surprise package, however, was the Fed’s move toward a neutral bias, indicating that it does not intend to boost rates before its next meeting in February.

The Dow jumped in response, and nothing could stop the Nasdaq Composite Index in December as it surged to another record — its 57th of the year. The Nasdaq has risen more than 79 percent this year. “Everybody’s infatuated with technology. The disparity between the tech funds, which are up 100 percent, and the value players is putting huge pressure on people and there is a reluctance to sell anything this year and take gains,´ said Charles Pradilla, Cowen & Co. market analyst.

The Dow Jones Industrial Average hung onto its gains, adding 135.48 points, or 1.22 percent, to its totals, and closing at 11203.60. The Boulder County Business Stock Index also edged forward, increasing 6.59 points, or 0.15 percent, ending the trading period that ended Dec. 22 at 4389.59. Declining issues, however, topped advancing issues 39 to 27.

SPONSORED CONTENT

Empowering communities

Rocky Mountain Health Plans (RMHP), part of the UnitedHealthcare family, has pledged its commitment to uplift these communities through substantial investments in organizations addressing the distinct needs of our communities.

Qualcomm has been one of our consistent gainers, and has in fact topped the Nasdaq’s list of best-performing companies in 1999, gaining almost 2,000 percent from the end of 1998. This month was no exception, and Qualcomm added another 96.19 points, or 24.71 percent, closing at a whopping $485.44. Qualcomm announced a 4-for-1 stock split for its shareholders of record as of Dec. 20, which will be distributed at the end of the year. The brokerage J.P. Morgan raised its price target for Qualcomm to $570 per share, from $460. Qualcomm was our top dollar gainer.

Applied Films sped forward after the company said that it will enlarge capacity at its joint venture facility located in Suzhou, China. As part of the expansion of NSG-AFC Thin Films Electronics, Applied Films will sell one of its thin-film coating systems to the joint venture and move it from its current location in Longmont to China.

Said Applied Films’ President and CEO Tom Edman, “The expansion is essential for our plans to expand our coating capacity to address the increasing demand from our Asian customer base at a competitive manufacturing location. We expect to be in commercial production at the joint venture by the end of the third quarter of calendar year 2000.” Applied Films gained 4.44 points, or 56.8 percent, and was our top percentage gainer. Applied Films ended the month at $12.25.

Colorado MedTech took a dive just before Christmas after it warned that second-quarter profits will fall below analysts’ estimates of 19 cents per share, and below the 14 cents per share Colorado MedTech earned in the same quarter last year. The company said it will earn between 6 cents and 8 cents per share, and cited shipment delays in its Creos X-ray generator operations. Colorado MedTech bought Creos earlier this year and said it said it expects the integration process will improve in 2000. Colorado MedTech shed 5.5 points, or 40.74 percent, and closed at $8. The company was our top percentage loser.