Cheer up Baldy, the cavalry is coming. Read this....
ALLR off on Revenue concern...
Friday, September 15, 2000
ALLR off on revenue concerns
--1:15 pm - By Michael Baron
Allaire Corp. (ALLR: news, msgs) is sinking $3.69, or 17.8 percent, to $17.06, on
revenue concerns, according to FAC Equities analyst Damian Rinaldi. "They have
indicated to analysts that the third quarter is tracking along with their internal plans, which
is ahead of my $36 million estimate, but the period appears to be more back-loaded than
usual," Rinaldi told CBS MarketWatch. "Skittish investors seem to be selling in light of the
absence of news." He added that institutions, who may have been hoping for blowout
results, may be thrown by the company's caution. "Our checks indicate demand from the
Allaire's core clients remains strong," he said. "But my sense is that institutions looking
for an upside surprise may not get it." Rinaldi, who rates the stock a "strong buy" with a
$76 price target, sees the weakness as a buying opportunity for the aggressive investor.
"This is a solid company with strong products, good distribution and a defensible market
share," said Rinaldi. "On a risk/reward basis, the stock looks very attractive at these
levels." Allaire's volume is already at 4.6 million shares, well above its daily average of
810,200. A First Call survey of 8 analysts put the company's third-quarter profit at 7 cents
a share. Representatives of the Newton, Mass., provider of Web site development
software weren't immediately available for comment.
gregg |
