Schaeffer's S&P 500 Index Hot Stocks Features PMC-Sierra, Gilead Sciences, Amgen, Guidant, and Tektronix

Business Wire, June 24, 2005

CINCINNATI -- Among the stocks featured in the June 24 edition of Schaeffer's S&P 500 Index Hot Stocks are PMC-Sierra (NASDAQ:PMCS), Gilead Sciences (NASDAQ:GILD), Amgen (NASDAQ:AMGN), Guidant(NYSE:GDT), and Tektronix (NYSE:TEK). Schaeffer's S&P 500 Index Hot Stocks is just one of the many free market commentaries written everyday at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRSHS1M&PAGE=1.

Schaeffer's S&P 500 Index Hot Stocks for Friday, June 24, 2005:

A daily feature available on SchaeffersResearch.com is the "SPX Hot Stocks" column. Each afternoon, we will provide a list of the day's top-20 performing stocks in the S&P 500 Index (SPX - 1,193.38) as well as the bottom-20 names. Featured along with this table will be news that is moving some of the securities.

NOTE: Stocks trading under $5 per share have been eliminated from this listing of the top-20 and bottom-20 performing stocks.

U.S. stocks are spending the final trading hour of the week in the red, as the continued step higher in oil prices and weakness among several blue-chips inspired a round of selling pressure. The SPX is off 0.64 percent and has dropped beneath the psychologically significant 1200 level. Only about 23 percent of its 500 members are hovering above breakeven heading into the close.

PMC-Sierra (NASDAQ:PMCS) came forward with some fundamental news on Friday, announcing 63 planned job cuts. The layoffs, which will be concentrated in the firm's research-and-development department, are in addition to 26 layoffs announced in May. In total, the elimination of these 89 positions will reduce the firm's total workforce by about 10 percent and trim operating expenses by $10 million to $12 million each year. The networking-chip company also noted that second-quarter revenue would be "at or near" the high end of its previously projected range between $70 million and $72 million. The stock has risen about three percent today on above-average volume.

Gilead Sciences (NASDAQ:GILD) slapped Roche Holding (RHHBY) with a notice of termination in an effort to maintain rights to its Tamiflu medication, which combats influenza. In the notification, GILD accused the Swiss company of poor marketing efforts that violated a 1996 licensing agreement. Roche disputed the claim, and asserted that it was not neglectful in its promotion of Tamiflu.

The biotechnology sector is one of a few outperforming groups in late Friday activity, as Genentech (DNA) completed its $408 million buyout of Biogen Idec's Oceanside, California plant. Amgen (NASDAQ:AMGN) is sharing in the fun, rising more than a percent on the day. AMGN is in need of a shake-up, as the stock has been trading in a sideways range between 55 and 65 since late 2003.

In a sea of red, Guidant (NYSE:GDT) has the dubious distinction of being the worst-performing SPX member this afternoon. The company, which is due to be acquired by Johnson & Johnson (JNJ), has found manufacturing defects in four models of its implantable defibrillating devices. As such, GDT officials warned doctors to begin discontinuing use of these faulty product lines. Not surprisingly, the stock gapped dramatically lower on heavy volume, slipping beneath its 20-month moving average as a result. Oddly enough, JNJ shares have managed to edge higher.

Tektronix (NYSE:TEK) said last night that fourth-quarter earnings totaled 24 cents per share. This figure was six cents below last year's results, and below analysts' consensus view. Excluding one-time costs, however, the firm banked 31 cents per share, edging out Wall Street's forecast by a penny. On Friday morning, the manufacturer of test and measurement equipment told CNBC interviewers that his company's earnings were "a little bit lumpy," and warned that the first-quarter period has historically been the firm's slowest.

Alcoa is a drag on the Dow Jones Industrial Average today, after announcing worldwide job cuts of 6,500, or five percent of its total staff, all of which will occur in the second quarter. The workforce reduction serves as part of the firm's overall restructuring plan, which aims to achieve annual savings of $150 million. In separate news, Longbow reduced its rating on the security to "neutral" from "buy."

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=13487 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=13487 .

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