Here is some positive news shadow for cmto.... An analyst from preferred capital market gave it a 12 month target of 50.. News was released at 6:22.. the quote is toward the end of the pr.. good luck j
Com21 Stock Dives After Setback For Cable Modem
PALO ALTO, Calif. (Reuters) - Com21 Inc. said Thursday its cable modem failed to win final certification by a standards body, news that sent its stock tumbling as much as 37 percent.
Cable Television Laboratories Inc., known as Cable Labs, Thursday said that it had certified for retail sale cable modems from five companies. Cable Labs is a consortium of cable-TV system operators that makes sure cable modems comply with industry standards and technology.
''While we are disappointed with the current results, we are very close to achieving final certification, and extremely pleased with the progress we have made during the certification process,'' said Peter Fenner, chief executive of Milpitas, Calif.-based Com21 in a statement.
Specifically, its DOXport cable modem was not certified. It plans to enter the next round of certification, results of which should be out by the end of August.
Com21 stock finished down $4.125 at $15.875. Earlier, the stock touched $12.75. It was the fourth-biggest percentage loser on the Nasdaq.
''The market was expecting Com21 would get certification and they didn't,'' said Joel Achramowicz, an analyst at Preferred Capital Market Inc. in San Francisco. ''But the company is executing and building strong relationships and we continue to rate the stock a strong buy.''
Cable modems are an increasingly popular way of connecting to the Internet at blazing speeds, along with new copper phone wire technology called DSL used by phone companies.
Com21 makes cable modems and cable modem equipment, and also develops technology for virtual private networks for transmitting voice over cable.
Achramowicz has a 12-month target of $50 for Com21.
He called Thursday's plunge ''overdone,'' adding that the stock is now ''a great buying opportunity for longer-term investors.''
Companies that did receive certification Thursday were Askey Computer Corp., Cisco Systems Inc. (Nasdaq:CSCO - news), Philips Electronics NV . Samsung Information Systems of America and Sony Corp. (NYSE:SNE - news) .
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