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IBO Lab Instrumentation Index Plunges in June.

On June 27, the US Federal Reserve Board cut interest rates for the sixth time this year. The Fed's decision to loosen the money supply and cut rates by a quarter point, or 0.25 percentage points, was met with skepticism after five previous cuts of 0.5 percentage points since January. The Fed indicated that it did not expect a turnaround in the US economy, stating that "the patterns evident in recent months-declining profitability and business capital spending, weak expansion of consumption, and slowing growth abroad-continue to weigh on the economy." It warned that "the risks are weighted mainly towards conditions that may generate economic weakness in the foreseeable future."

The three major US market indices showed continued signs of stabilization for the month of June. The Dow Jones Industrial Average closed at 10,502.40, down 4% for the month and 3% for the year thus far. The NASDAQ was the only index to end the month up from its previous close a month ago, up 2%, but still remains down 13% for the year. The S&P 500 index finished 2% below its May close of 1,248.47. For the year, the S&P 500 closed the first half down 7%.

For the month of June, two of the IBO stock indices showed modest gains from the end of May, while the other two showed signs of continuing weakness, adding double-digit losses for the month to their year-to-date losses. The Laboratory Instrumentation Stock Index fell 20% for the month, closing at 389.39 down from 482.93. The worst performing index of the year thus far, the Laboratory Instrumentation Stock Index has ended the first half of 2001 down 53% from its December close. The Process/ Metrology/Motion Instrumentation Stock Index also showed a double-digit loss for the month, falling 13% to 304.18, and ended the first half down 35%. The other two IBO stock indexes rose 8% for the month of June. The Filtration Stock Index, the only IBO stock index to be positive after the first six months of the year, up 5%, closed June at 193.51. The Laboratory Equipment Distributor Stock Index closed at 190.32, up from its close of 176.07 at the end of May. The Laboratory Equipment Distributor Stock Index finished the first half down 2%.

[GRAPH OMITTED]

Laboratory Instrumentation Stock Index

The Laboratory Instrumentation Stock Index showed major signs of weakening, falling 20%, despite the fact that the stock price of 14 of the 28 companies rose for the month with one remaining unchanged. Many of the smaller companies showed positive gains for the month, while the larger companies were hit with information regarding slowing sales and earnings worries for the second quarter. Eight of the 14 gainers showed double-digit growth, with Rheometric Scientific, Visible Genetics and Bioanalytical Systems growing 58%, 67% and 70%, respectively, for the month. Of the 13 losers for the month, nine of those companies had double-digit losses. The larger companies in this index were the reason for the decrease for the month. Large companies that closed June with double-digit losses were Waters, Affymetrix, Thermo Electron, PerkinElmer and Applied Biosystems, respectively showing losses of 44%, 44%, 21%, 20% and 13%.

During the month, PerkinElmer issued a 2:1 stock split effective June 1, while in mid-June, Waters announced that sales in its mass spec business have slowed and that it expects sales growth for the second quarter between 2%-5% after currency effects (see pages 1 and 2). J.P. Morgan cut its rating on Waters from a "Buy" to a "Long-Term Buy" due to the earnings announcement. Applied Biosystems' rating was cut from a "Buy" to a "Hold" by Credit Suisse First Boston due to concerns regarding the company's ability to meet its growth targets for the next few quarters. In a SEC filing released in early June, GlaxoSmithKline Plc cut its stake in Affymetrix from 14.5% to 13.4% by selling 600,000 shares. Coverage was initiated on two companies: Varian received a "Market Outperform" rating from Goldman Sachs and Harvard Bioscience received a "Strong Buy" rating from U.S. Bancorp Piper Jaffray. On a positive note, Bioanalytical Systems is expecting another strong quarter after exceeding analysts expectations for the first two quarters of its fiscal year. For the first six months of the year, Bioanalytical Systems' stock has risen 287%.

The Process/Metrology/Motion Instrumentation Stock Index

The Process/Metrology/ Motion Instrumentation Stock Index closed 13% below its May close with three companies gaining for the month and six companies falling. MTS Systems and InVision led the gainers with 13% and 10% respective growth for the month. Five of the six companies whose stock price fell for the month dropped by over 10%. Zygo, DecisionLink, and Newport fell 24%, 20%, and 18%, respectively. During the month, there were two analyst downgrades within this index. Robertson Stephens cut both Newport's and Zygo's ratings from "Buy" ratings to "Market Perform" ratings.

The Filtration Stock Index

The Filtration Stock Index rose 8% for June and continues to be the best performer of the four IBO stock indices at 5% above its year-end close. For the month, all of the five companies showed stock price gains between 2% to 23%. The largest gainers, Osmonics, Ionics and Millipore, rose 23%, 16%,and 12%, respectively. For the year thus far, four of the companies have grown. The largest gainer, Osmonics, is up 101%. Only one company, Millipore, remains down 2% for the year. During the month, Millipore warned of an earnings shortfall for the second quarter with its Microelectronics business expected to be 25% to 35% below its first quarter revenues of $85.6 million.

Laboratory Equipment Distributor Stock Index

The Laboratory Equipment Distributor Stock Index recorded 8% growth for the month of June. Shares of SciQuest.com and Kewaunee Scientific fell 35% and 5%, respectively. Fisher Scientific, Apogent and New Brunswick all reported gains for the month, with shares of these companies rising 10%, 5% and 5%, respectively. For the year, Fisher and SciQuest both remain 21% below their respective December closes and Kewaunee remains down 15%. The only gainer for the year is Apogent, up 20% after the first half. SciQuest reported in late June actions intended to transform the company to a software and solutions company. SciQuest is trying to improve operating profitability by moving away from the "people intensive e-commerce services" and refocusing resources toward software products and professional services.

International Stocks

In the international stock exchanges, Pacific Rim Shares fared well compared to European shares. Of the Japanese companies, Horiba and JEOL shares rose 5% and 4%, respectively, while shares of Shimadzu fell 4%. The three Japanese companies all remain positive for the year, up between 18% to 29%. Within the companies included in the European Shares segment, share prices of seven companies declined while only one rose. Oxford Instruments, the only gainer, rose 22% for the month and remains the only company in the black for the year, up 13%. Of the companies whose share price showed a decline for the month, Gretag Imaging shares fell 32% for the month and 90% for the first half, Genetix shares declined 6% for June and 21% for the year, and shares of Tecan slipped 15% for June and remain down 12% for the year.
 Mkt. Value 52 week Price
Company: Exchange (000s) high/low 6/30/01

Laboratory Instrumentation

Affymetrix: o $1,225,980 19.90-102.50 $22.05
Applied Biosystems:n $5,641,575 18.49-133.31 $26.75
Argonaut Tech:o $95,160 4.20-27.69 $5.20
Beckman Coulter:n $2,423,520 28.63-43.00 $40.80
Biacore:o $346,038 28.00-46.25 $35.31
Bioanalytical Systems:o $41,170 2.13-9.10 $8.95
Bio-Rad Laboratories:a $622,500 21.00-51.30 $49.80
Bruker Daltonics:o $824,329 8.31-51.38 $15.07
Cell Robotics:o $5,364 2.00-4.50 $0.63
Ciphergen:o $180,225 3.75-39.44 $6.75
CRS Robotics:o $24,918 2.00-4.50 $3.10
Dionex:o $738,150 21.41-38.00 $33.25
Genomic Solutions:o $121,250 1.75-30.13 $4.85
Harvard Bioscience:o $273,544 5.88-13.50 $11.03
Illumina:o $375,782 5.69-51.63 $11.78
Invitrogen:o $3,654,620 38.50-87.44 $71.80
Isco:o $42,000 3.41-9.00 $7.50
Luminex:o $549,725 11.95-64.13 $19.99
Molecular Devices:o $324,810 16.38-112.50 $20.05
O.I. Analytical:o $9,492 2.25-4.69 $3.39
Packard BioScience:o $553,610 3.94-28.00 $8.30
PerkinElmer:n $2,777,777 21.28-60.50 $27.53
Qiagen:o $3,087,000 16.88-58.50 $22.05
Rheometric Scientific:o $73,304 1.88-7.13 $5.20
Thermo Electron:n $3,954,792 19.25-31.24 $22.02
Varian Inc.:o $1,062,670 21.50-66.13 $32.30
Visible Genetics:o $385,175 12.16-49.38 $24.85
Waters Corporation:n $3,569,973 26.00-90.94 $27.61

Process/Metrology/Motion
 Instrumentation

DecisionLink:o $6,048 0.09-0.59 $0.14
InVision Technologies:o $47,355 1.31-4.56 $3.85
MTS Systems:o $285,453 5.50-13.75 $13.79
Nanometrics:o $316,101 10.63-63.88 $27.49
Newport:o $853,300 21.00-192.06 $26.50
Strategic Diagnostics:o $55,610 2.06-6.50 $3.35
Veeco Instruments:o $973,875 30.88-117.00 $39.75
X-Rite:o $188,292 5.00-13.50 $8.84
Zygo:o $331,525 14.00-98.38 $22.25
Filtration
CUNO:o $489,000 22.06-31.00 $30.00
Ionics:n $513,450 18.19-34.06 $31.50
Millipore:n $2,869,674 42.56-77.00 $61.98
Osmonics:n $198,720 6.81-13.23 $13.80
Pall:n $2,884,778 17.94-26.25 $23.53
Laboratory Equipment/
 Distributors
Apogent Technologies:n $2,592,840 16.38-29.75 $24.60
Fisher Scientific:n $1,162,900 19.88-45.50 $29.00
Kewaunee Scientific:o $23,800 7.75-15.50 $9.52
New Brunswick:o $27,755 3.00-8.52 $4.55
SciQuest.com.o $30,264 0.53-14.81 $1.04

Laboratory Instrumentation
 Stock Index 389.39
Process/Metrology/Motion
 Instrumentation 304.18
Filtration Stock Index 193.51
Laboratory Equipment
 Distributor Stock
 Index 190.32
Dow Jones Industrial
 Average 10502.40
S&P 500 1224.38
NASDAQ Composite 2160.54

 Chg. Chg. EPS
Company: Exchange 1 mo. YTD P/E 12 mo.

Laboratory Instrumentation

Affymetrix: o -44% -70% N/A -0.31
Applied Biosystems:n -13% -72% 26 1.01
Argonaut Tech:o 1% -39% N/A -0.48
Beckman Coulter:n 8% -3% 20 2.05
Biacore:o -6% -22% 50 0.71
Bioanalytical Systems:o 70% 287% 249 0.06
Bio-Rad Laboratories:a 16% 57% 17 3.01
Bruker Daltonics:o -17% -36% 251 0.04
Cell Robotics:o 9% 12% N/A -0.54
Ciphergen:o 8% -49% N/A -3.91
CRS Robotics:o -6% 15% 21 0.15
Dionex:o 12% -4% 24 1.38
Genomic Solutions:o 19% -36% 40 0.12
Harvard Bioscience:o 22% 15% 79 0.14
Illumina:o 3% -27% 9 1.30
Invitrogen:o 0% -17% 184 0.39
Isco:o -13% 7% N/A -0.04
Luminex:o -61% -23% N/A -0.43
Molecular Devices:o -9% -71% 31 0.64
O.I. Analytical:o 4% -8% 14 0.25
Packard BioScience:o 30% -29% 12 0.72
PerkinElmer:n -20% -48% 19 1.42
Qiagen:o -11% -36% 158 0.14
Rheometric Scientific:o 58% 43% 520 0.01
Thermo Electron:n -21% -26% N/A -0.48
Varian Inc.:o -5% -5% 22 1.45
Visible Genetics:o 67% -34% N/A -2.45
Waters Corporation:n -44% -67% 23 1.20

Process/Metrology/Motion
 Instrumentation

DecisionLink:o -20% 22% N/A -0.34
InVision Technologies:o 10% 168% N/A -0.08
MTS Systems:o 13% 90% 24 0.58
Nanometrics:o 3% 99% 28 0.97
Newport:o -18% -66% 30 0.89
Strategic Diagnostics:o -13% 45% 30 0.11
Veeco Instruments:o -14% -1% 153 0.26
X-Rite:o -2% 14% 17 0.52
Zygo:o -24% -21% N/A -1.16
Filtration
CUNO:o 6% 12% 27 1.13
Ionics:n 16% 11% N/A -0.05
Millipore:n 12% -2% 30 2.08
Osmonics:n 23% 101% 30 0.46
Pall:n 2% 10% 21 1.13
Laboratory Equipment/
 Distributors
Apogent Technologies:n 5% 20% 21 1.20
Fisher Scientific:n 10% -21% N/A -0.27
Kewaunee Scientific:o -5% -15% 13 0.74
New Brunswick:o 5% 0% N/A -0.42
SciQuest.com.o -35% -21% N/A -3.25

Laboratory Instrumentation
 Stock Index -20% -53% 73
Process/Metrology/Motion
 Instrumentation 13% -35% 80
Filtration Stock Index 8% 5% 25
Laboratory Equipment
 Distributor Stock
 Index 8% -2% 30
Dow Jones Industrial
 Average -4% -3%
S&P 500 -2% -7%
NASDAQ Composite 2% -13%

 EPS LTD/ FY R&D/
Company: Exchange FY Equity ROE Sales

Laboratory Instrumentation

Affymetrix: o -0.24 278% N/A 29%
Applied Biosystems:n 0.86 3% 20% 10%
Argonaut Tech:o -0.50 0% N/A 29%
Beckman Coulter:n 2.03 314% 36% 10%
Biacore:o 0.67 14% 12% 17%
Bioanalytical Systems:o -0.30 21% N/A 9%
Bio-Rad Laboratories:a 2.55 93% 14% 9%
Bruker Daltonics:o 0.04 18% 2% 26%
Cell Robotics:o -0.54 N/A N/A 81%
Ciphergen:o -4.09 0% N/A 101%
CRS Robotics:o 0.15 0% 0% 0%
Dionex:o 1.46 2% 29% 8%
Genomic Solutions:o -0.90 2% N/A 29%
Harvard Bioscience:o 0.13 0% 4% 5%
Illumina:o -0.76 5% N/A 1035%
Invitrogen:o 1.07 24% 2% 10%
Isco:o -0.17 7% N/A 10%
Luminex:o -0.48 1% N/A 104%
Molecular Devices:o -0.62 N/A 6% 17%
O.I. Analytical:o 0.21 N/A 4% 8%
Packard BioScience:o -0.11 1465% N/A 17%
PerkinElmer:n 1.33 112% 19% 5%
Qiagen:o 0.14 15% 12% 11%
Rheometric Scientific:o 0.00 N/A #DIV/0! N/A
Thermo Electron:n -0.22 60% N/A 8%
Varian Inc.:o 1.26 15% 17% 5%
Visible Genetics:o -2.42 N/A N/A 81%
Waters Corporation:n 1.06 4% 32% 5%

Process/Metrology/Motion
 Instrumentation

DecisionLink:o -0.36 14% N/A 459%
InVision Technologies:o -0.14 4% N/A 14%
MTS Systems:o 0.17 40% 2% 6%
Nanometrics:o 0.92 3% 8% 13%
Newport:o 0.86 1% 6% 9%
Strategic Diagnostics:o 0.09 7% 7% 12%
Veeco Instruments:o -0.75 6% N/A 14%
X-Rite:o 0.58 N/A 22% 8%
Zygo:o -1.28 4% N/A 13%
Filtration
CUNO:o 1.05 9% 15% 5%
Ionics:n -0.01 13% N/A 2%
Millipore:n 2.53 113% 14% 7%
Osmonics:n 0.38 28% 5% 4%
Pall:n 1.18 46% 19% 4%
Laboratory Equipment/
 Distributors
Apogent Technologies:n 1.20 87% 17% 2%
Fisher Scientific:n 0.51 -369% -7% N/A
Kewaunee Scientific:o 1.44 10% 14% N/A
New Brunswick:o -0.65 N/A N/A 14%
SciQuest.com.o -3.00 1% N/A 31%

Laboratory Instrumentation
 Stock Index 80% 10% 9%
Process/Metrology/Motion
 Instrumentation 7% 1% 10%
Filtration Stock Index 47% 13% 5%
Laboratory Equipment
 Distributor Stock
 Index 286% 10% 1%
Dow Jones Industrial
 Average
S&P 500
NASDAQ Composite
Region Mkt Value MktValue
Company (U.S.$000s) (Local, mil.)

Pacific Rim Shares
Horiba: t $275,881 [yen] 34,394
JEOL: t $330,021 [yen] 41,144
Shimadzu: t $1,013,347 [yen] 126,334

European Shares
Genetix:l $5,350,754 3,799 [pounds sterling]
Oxford
 Instruments:l $13,787,611 9,788 [pounds sterling]
Whatman:l $7,205,403 5,115 [pounds sterling]
Alpha M.O.S.: c $8,183 Euro 10
Analytic Jena:g $48,775 Euro 58
Chemunex: e $2,548 Euro 3
Grelag Imaging:s $5,189 CHF 9
Tecan:s $1,074,156 CHF 1,933

 Price
Region 6/30/01 Chg. Chg.
Company (Local) 1 mo. YTD P/E

Pacific Rim Shares
Horiba: t [yen] 1101 5% 29% 60
JEOL: t [yen] 635 4% 18% 79
Shimadzu: t [yen] 473 -4% 23% 52

European Shares
Genetix:l 178 [pounds sterling] -6% -21% N/A
Oxford
 Instruments:l 207 [pounds sterling] 22% 13% N/A
Whatman:l 206 [pounds sterling] -10% -29% 7
Alpha M.O.S.: c Euro 3.7 -26% -54% N/A
Analytic Jena:g Euro 16.5 -16% -29% 52
Chemunex: e Euro 0.1 -44% -90% N/A
Grelag Imaging:s CHF 30 -32% -79% 1
Tecan:s CHF 149 -15% -12% 50

Region EPS EPS
Company 12mo. FY

Pacific Rim Shares
Horiba: t [yen] 18.5 [yen] 18.5
JEOL: t [yen] 8.1 [yen] 8.1
Shimadzu: t [yen] 9.1 [yen] 9.1

European Shares
Genetix:l 0.0 [pounds sterling] 0.0 [pounds sterling]
Oxford
 Instruments:l -41.2 [pounds sterling] -41.2 [pounds sterling]
Whatman:l 30.2 [pounds sterling] 30.2 [pounds sterling]
Alpha M.O.S.: c -FRF 6.0 -FRF 6.0
Analytic Jena:g Euro 0.3 Euro 0.3
Chemunex: e -Euro 0.2 -Euro 0.2
Grelag Imaging:s CHF 21 CHF 19
Tecan:s CHF 3 CHF 3

Region LTD/ FY R&D/
Company Equity ROE Sales

Pacific Rim Shares
Horiba: t 52% 2% 5%
JEOL: t 32% 3% 7%
Shimadzu: t 79% 2% 3%

European Shares
Genetix:l 0% N/A 0%
Oxford
 Instruments:l N/A N/A 6%
Whatman:l 9% 14% 6%
Alpha M.O.S.: c N/A N/A N/A
Analytic Jena:g 5% 3% 3%
Chemunex: e 2% N/A 76%
Grelag Imaging:s 1% 11% 12%
Tecan:s 5% 28% 11%

The IBO composite stock indices are weighted by market capitalization.
Index averages for the various financial ratios presented are also
weighted statistically to reflect the relative sizes of the constituent
companies. Lab Instrumentation Index: 12/31/91=100; Process/Metrology/
Motion Instrumentation, Filtration and Lab Equipment/Distributors
Indices: 12/31/93=100. Nonrecurring charges excluded from
composite P/E ratios. Exchanges: n=NYSE; a=AMEX; o=NASDAQ; t=Tokyo;
l=London: s=Switzerland; g=NEUER; e=EASDAQ; c=Continuous Market.
dd: Indicates loss in the most recent four quarters:
cc: P/E ratio is 100 or more; n/ap: not applicable;
n/a: data not available at press time. Return on equity
calculated using most recent year-end data.

COPYRIGHT 2001 Strategic Directions International Inc. (SDI)
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001 Gale, Cengage Learning. All rights reserved.

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Title Annotation:Government Activity; Laboratory Instrumentation Stock Index
Publication:Instrument Business Outlook
Article Type:Brief Article
Geographic Code:1USA
Date:Jun 30, 2001
Words:3153
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