NCOG
<<Fort Washington, Pennsylvania, Dec. 7 (Bloomberg) -- Shares
of NCO Group Inc., which collects bad debts and manages
companies' accounts receivables, fell 21 percent on speculation
on the Internet about a possible lawsuit, an analyst said.
NCO fell 9 1/16 to 34 5/16, its lowest close in a year, in
trading of 2.9 million shares -- nine times the three-month daily
average. The shares hit a 52-week low of 24 3/8 on May 19.
A note in a Yahoo! Inc. electronic chat room today claimed a
company was filing a $20 million lawsuit against NCO for its
''business practices,'' CIBC World Markets analyst Andrew Lanyi
said.
''It's probably baloney,'' he said. ''It sounds like a short
seller trying to put out rumors.''
NCO may also have a small revenue shortfall in its health-
care unit, Lanyi said, adding that management claims it will be
so small it won't be seen in fourth-quarter earnings. He said NCO
also trims employment at this time each year and then gradually
brings people back on, which may be worrying some investors.
Company officials weren't immediately available to comment.
Lanyi, who rates the shares an ''aggressive buy,'' expects
revenue to more than double to $145 million this quarter and
earnings per share to climb to 38 cents.>> |
