S&P names stocks to watch for 2002

NEW YORK, Dec. 31 (UPI) -- Standard & Poor's equity research team has issued the names of thirty-five stocks expected to be stellar performers in 2002.

The stocks, referred to as the S&P PowerPicks 2002 Portfolio, are drawn from the 10 Global Industry Classification Standard sectors that make up the S&P 500 Index and are all members of the S&P 1500 Composite Index, which consists of large cap, mid cap and small cap companies.

The picks included, American International Group (NYSE:AFF), Ameripath, Andrx Corp., Biomet, Cephalon, Chico's FAS, ChoicePoint, Constellation Brands (NYSE:STZ), Cooper Industries (NYSE:CBE), DoubleClick, Fedex Corp., FEI Co. (NASDAQ:FEIC), FleetBoston Financial, Flextronics, Fortune Brands, Global Santa Fe, IBM, IMC Global, IndyMac Bancorp, Kaydon, Kinder Morgan, MBNA Corp., Microchip Technology, Moody's, Nextel Communications, Pactiv Corp. (NYSE:PTV), Park Place Entertainment, Peregrine Systems, Quest Diagnostics, Sears, Roebuck, Siebel Systems, Steel Dynamics. (NASDAQ:STLD)(NASDAQ:STLD), TXU Corp., Tyco International (NYSE:TYC) and UTStarcom.

The objective of the PowerPicks Portfolio is to exceed the total return capital appreciation plus dividends paid -- generated by the S&P 500 during the same year. The portfolio will be a "frozen" one, meaning that it will undergo no changes throughout the entire year.

"The S&P PowerPicks 2002 Portfolio represents the collective 'best ideas' by the Standard & Poor's equity research staff," said Kenneth Shea, Managing Director, Equity Research, Standard & Poor's.

"Each of our 35 analysts contributes to this list based on his or her research and belief that the companies they select are positioned for superior growth throughout the new year," Shea said.

The median capitalization of the S&P PowerPicks 2002 Portfolio is approximately $5 billion, ranging from a high of $209 billion for American International Group to a low of $500 million for Steel Dynamics.

By contrast, the median market capitalization of the S&P 500 Index is approximately $8.3 billion. The heaviest economic sectors within the S&P PowerPicks 2002 portfolio are information technology, health care, financials, and consumer discretionary, which, together, make up nearly two-thirds of the portfolio's issues.

Creation of S&P PowerPicks annual portfolios began on Jan. 1, 1997. Since inception, the S&P PowerPicks portfolios cumulative total return performance through Nov. 30 was plus 86.9 percent, vs. plus 64.5 percent for the S&P 500 index (both including dividends).

Argonaut Technologies cuts staff

FOSTER CITY, Calif., Dec. 31 (UPI) -- Argonaut Technologies Inc. said it will reduce its work force by 20 people, or approximately 13 percent, and take other cost-savings measures in order to help the company through the current economic downturn.

The company, which makes instruments for biotech and chemical research, said it will control salary increases and eliminate discretionary expenditures and unfilled positions, resulting in expense reductions of about $4 million.

Argonaut also said it will take a one time charge of about $700,000 to $900,000 from the cost savings measures in its fourth quarter.

Argonaut also reaffirmed its guidance for the fourth quarter in spite of the work force reductions.

"We expect to achieve our revenue guidance for the fourth quarter of 2001, and we are taking these actions now so that we can move more rapidly toward profitability once this difficult economic period is behind us," said Lissa A. Goldenstein, president and chief executive officer.

"We remain positive on our industry's long-term growth prospects and want to make sure we are positioned to lead coming out of this slow period. We are confident that this comprehensive cost savings initiative, along with our ongoing innovative product pipeline investments, will allow Argonaut to compete aggressively as the anticipated industry recovery occurs. We believe these reductions create a more efficient, dynamic and flexible company that will continue to provide innovative solutions to speed chemistry development," Goldenstein added.

Birmingham Steel units sells mini-mill

BIRMINGHAM, Ala., Dec. 31 (UPI) -- Birmingham Steel Corp. said its 85 percent-owned subsidiary, Birmingham Southeast, LLC, has completed the sale of its mini-mill facility in Cartersville, Georgia, to AmeriSteel Corp., a U.S. subsidiary of Gerdau S.A. (NYSE:GGB) of Rio de Janeiro, Brazil.

The company had previously signed a definitive agreement with AmeriSteel on Nov. 14.

As a result of the sale, Birmingham Steel will reduce its debt by approximately $30 million.

In addition, the company will be relieved from off-balance-sheet lease obligations of approximately $70 million. As of last Saturday, Birmingham Steel has no involvement in the Cartersville operation.