NEWS ARTICLE FEATURING KEITHLEY: (July 13th)
7/13/00 - Solon, Ohio-Based Technology Firm Catches Analysts Eye
Jul. 12 (Akron Beacon Journal/KRTBN)--Suddenly, Keithley Instruments is a hip new technology company, subject to glowing reports from
analysts, investments by major institutions and volatile swings in its stock price.
The 54-year-old Solon company makes instruments used by telephone and fiber optics companies and is traded on the New York Stock
Exchange. But analysts say the company was largely ignored by big-time investors until recently. Once they got the word, the stock took off.
Joseph Noel of Pacific Growth Equities accepts responsibility for a lot of the recent attention. He started following Keithley on May 11 when the
company was trading at $24 a share. By July 3, the stock reached an interday high of $103 and Noel stated that might be a bit high for
short-term investors. The stock fell to $67.50 by the end of the week. On Monday, it closed at $83.75, making it the best performer on the NYSE
that day.
"All I said was, `short term, at $103, let's be a little careful,' " said Noel of his warning last week. "I think $81 is much more realistic."
Keithley yesterday closed at $79.94, down $3.81.
From Jan. 8 to Friday's close, Keithley was up 1,456 percent. The
Russell 2000 index of small technology companies was up 119 percent over the same period.
The bumpy ride on Wall Street shocked some investors, said Marcia Parker, manager of external reporting and investor relations for Keithley.
She got dozens of calls from private investors when the stock fell last week. "They all wanted to know what happened to the stock price and
whether the plant had blown up or something, and I said, `No, everything is all right.' "
Vincent Glinski, an analyst for Jessup & Lamont Securities, said Keithley is benefiting from its ties with two of the hottest technology issues for
traders: telecommunications and fiber optics.
He said Keithley was "under-followed and had little coverage on Wall Street" until a couple of months ago.
Glinski said he and Noel are the only analysts following the company, but he has heard that others might join soon.
Keithley plans to announce earnings before the markets open July 20. Glinski and Noel both expect the company to report earnings at about 33
cents per share, up from around 15 cents last year.
Glinski said there's still room for growth. He predicted revenue of about $39 million in the July 20 announcement and said the company has the
factories, employees and supply agreements that could produce a $50 million quarter.
Glinski and Noel both had praise for Keithley's leadership.
"Clearly management has done their job," said Noel.
By Dave Scott
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