Nice PR job from PCTL management did it this time. I suspect brokers from a number of brokerage houses are heavily pitch PCTL today. I say this because there was no significant downward break in the intraday chart and closed at the high. The SIGNIFICANT news about the intranet and internet was actually out 2-3 days ago (http://www.techstocks.com/~wsapi/investor/s-3202/reply-34)! Thanks TERRY for letting us know about the analyst meeting ahead.
Picturetel Shares Up 12% After Analysts' Meeting >PCTL
Dow Jones News Service ~ November 14, 1996 ~ 3:23 pm EST
(MORE) DOW JONES NEWS 11-14-96
2:33 PM
Picturetel Stk -2: Intranet, Internet Prospects Cited >PCTL
NEW YORK (Dow Jones)--Picturetel Corp. (PCTL) shares rose 12%, after
upbeat comments by the company to analysts yesterday apparently encouraged
investors.
The meeting yesterday reassured analysts that Picturetel, which holds a 52%
market share in installed videoconferencing systems, is poised to provide
products and services beyond company boardrooms to intranets and the Internet,
said Randy Yuen, an analyst at Oppenheimer & Co.
''There were a lot of doubts about whether Picturetel had a strategy (for serving
intranets and the Internet), and at yesterday's meeting they soundly gave the
impression that they are not only further ahead on the technological front but also
on the partnership front,'' Yuen said.
Yuen said the company outlined partnerships with three companies - Connectix,
U.S. Robotix Corp. (USRX), and 3Com Corp. (COMS) - that analysts expect
will further the goals, he said.
Picturetel officials could not immediately be reached for comment.
Analyst Herb Maher of Advest Group, Boston, said shares traded between 35
and 36 before an article in Business Week magazine last month raised doubts
among some about Picturetel's prospects for dominating the emerging market for
desktop videoconferencing.
Share prices fell to 25 earlier this month but are probably rebounding because of
the upbeat meeting, an annual videoconference that was held in New York, San
Francisco and other cities, Maher said.
''It was almost like a revival meeting, where they highlighted the acceptance of
videoconferencing as a mainstream technology and reinforced their mission to
develop the technology that's dependable and (works) across all media,'' he said.
His 12-month share-price estimate is 50, and his 1996 earnings estimate of 98
cents is a penny above the First Call estimate based on a survey of six analysts.
Shares of the Nasdaq-listed company were up 3 3/8 to 32 1/4 on volume of 1.7
million shares. Average daily volume is 558,500.
(END) DOW JONES NEWS 11-14-96
3:23 PM |
