CIBC cuts P-Com to "hold". Cites technical/operational problems. Cuts revenue & EPS estimates.
PCMS closed today at 6. Down 2+5/8 for a 30% loss on volume of 7.5 million.
www2.marketwatch.com
Thursday, June 22, 2000
--3:57 pm CIBC cuts P-Com to "hold"
P-Com Inc. (PCMS: news, msgs) is diving 2 7/16, or 28.3 percent, to 6 3/16 on
heavy volume of 6.74 million shares. Average daily volume is 1.8 million.
CIBC World Markets analyst Dale Pfau confirmed late Thursday that he has
downgraded the stock to "hold" from "strong buy" but he refused to offer any
details of the reason for the downgrade. The Campbell, Calif., developer of
wireless access systems for telecommunications applications wasn't
immediately available for comment.
This was posted on Yahoo! (Message number 17182):
>Here is CIBC Opco's downgrade text:
>
> We are downgrading our investment opinion on the shares of P-Com from Strong
> Buy to Hold. Although the industry environment favorable and the company has
> products and technology execution and near term order receipt delays continue
> to plague the company. After our conference and further discussions with
> management, we believe that the company may not meet our estimates for Q2, and
> could miss the revenue target of $10 million. Based upon this data point, we
> believe Q3 may not show a significant improvement.Therefore we are cutting our
> estimates. For 2000, we are cutting our estimates from a loss of $0.14 per
> share on revenues of $255 million to a loss of $0.32 per share revenues of
> $215 million. For 2001 we are cutting our estimates to $0.11 per share on
> revenues of $279 million from our prior $0.45 on revenues of $370 million.
> Although we still believe in the long term potential of the company and the
> industry, we believe that investors will again be surprised by the weakness of
> the quarter, and may not return to the stock until we see significant
> operational improvements. We believe that the share price currently reflects
> investor skepticism on the quarter |
