Sorry for the long explanation.
Took the words right out of my mouth. :-)
Not too many negatives in the call.
1. Lost the LU shootout with GSNX, but GSNX was well entrenched there.
2. Margins down. this usually causes the Street to punish a stock severely even when the underlying story is as good as it is in this case. i.e. - There weren't any CVD sales for all practical purposes last year. Now it's more than 50% of a rapidly growing top line; and yes its GM is a little lower than that for Strip at this time.
3. With both Martin and Mora gone, RTP and EPI sales effort suffered.
On the other hand, we came within a $M of record top line. That will happen next quarter.
We've got a winner here. So I guess the Street will only take 20 -30% off the top. ;-)
Seriously, I don't think that there's a whole lot of institutional ownership. Less than 1.5M shares at the end of March. And I doubt that the momentum players have yet discovered MTSN. So I really don't expect MTSN to get the same bad treatment that the other sector members got for meeting or beating estimates.
On a very positive note, I believe that both DLJ and Needham are currently covering MTSN.
H&Q had dropped coverage but covered the call. Perhaps, they're about to resume coverage. (Or did DLJ drop?)
Soundview was also on the call. This would be very nice to see Soundview initiate coverage during the next couple weeks or so.
All in all, my outlook for MTSN's short, medium and long term future remains unchanged. It's going to outperform everything in the sector.
<vbg>
Ian.
Top Five Institutional Holders
Rank Institutional Name Report Date Position
1 DIMENSIONAL FUND ADVISORS INC 03/31/99 902,200
2 MELLON BANK CORPORATION 03/31/99 479,269
3 BARCLAYS BANK PLC 03/31/99 179,504
4 NATIONAL CITY CORPORATION 03/31/99 36,000
5 STATE STREET CORPORATION 03/31/99 35,000
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