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Stock futures edge lower

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Stock futures are edging lower this morning as pre-market news is scattered with upgrades and downgrades among various stocks. Shares of wireless telecom equipment company LM Ericsson Telephone (NASDAQ:ERICY) $4.23 are among the most actively traded stocks in the pre-market, trading down 2% at $4.13 after the company's CEO said he remained cautious about any turnaround for the company. Investment firm Fulcrum initiated coverage of Lm Ericsson (ERICY) this morning with a "sell" rating and price target of $2, citing weak global launch of 3G and continual cuts in wireless capital spending.

S&P futures (sp02m) are currently trading lower by 1.8 points at 1,140.30, while NASDAQ futures (nd02m) are down 2.5 points at 1,445. Dow futures are off 19 points at 10,365.

Fair value for the S&P 500 today is $2.30. HL Camp & Company has their computers set for program buying at $3.50 and set for selling at $1.20. Fair value for the NASDAQ-100 today is $7.31.

Parametric Technologies halted

Software solutions provider Parametric Technologies (NASDAQ:PMTC) $7.36 were halted for trading this morning just before the company warned that it expects Q4 EPS to range from a "small loss to break even" versus current Multex consensus of a $0.04 per share profit. PMTC said it sees revenues coming in at 5%-10% below consensus. The company said revenues and earnings have been adversely impacted by customer delays or reduced software spending.

Sirius Satellite reports earnings

Subscription radio service provider Sirius Satellite Radio (NASDAQ:SIRI) $4.43 is trading higher in pre-market action at $4.84 after the company reported Q4 earnings loss of $-1.52 a share, which was 6-cents below consensus. The company's Q4 net loss included a $9.8 million non-cash expense resulting principally from a previously announced repricing of certain employee stock options. The company said it is accelerating its regional rollout plan for its satellite radio service. Sirius (SIRI) also announced that it has successfully renegotiated the covenants in its Lehman credit facility, eliminating 2002 requirements and substantially reducing subsequent year requirements. In return, Sirius has agreed to adjust the principal repayment schedule on the loan and reduce the strike price of their 2.1 million warrants to $15 per share from $29 per share.

Adelphia reports loss of $4.01 including charges

Shares of cable television provider Adelphia Communications (NASDAQ:ADLAC) $20.39 are trading higher in pre-market action at $20.80 after the company reported a quarterly net loss of $6.95, which includes charges. The company said the widening losses versus year-ago were in part caused by a greater net loss from its former subsidiary Adelphia Business Solutions (NASDAQ:ABIZ) $0.09, which filed for bankruptcy yesterday.

Adelphia Communications (ADLAC) forecast an increase from 12% to 13% in its 2002 pro forma revenue and earnings before interest, taxes, depreciation and amortization. It also said it raised its 2002 digital and data subscriber guidance to $2.7 million digital subscribers and 775,000 high-speed data customers. At the end of the first quarter, it expects to report digital subscription of over 2.2 million.

ADLAC is a stock we've mentioned rather frequently as a short/put candidate in our commentary. Traders short/put the stock can look to exit with gains this morning, or can snug down a stop just above the $21.42 level of retracement resistance we've shown on our bar charts in recent articles.

Jeff Bailey
Senior Market Technician
Option Investor

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