Here is some information from individual investor online. Not very reassuring and further confirms my weak outlook for the company in the near future.
Another bad qtr. pre-announced (9/24)
Wandel & Goltermann clearly has yet to hit bottom as it made another bad pre-announcement, this one for its fourth quarter (ending September). Gerry Chastelet, president and CEO, said that longer sales cycles and the continued decline in DA-3x sales will result in a loss of $0.25 to $0.35 per share on revenue in the range of $10.5 million to $11.5 million.
Clearly, WGTI is struggling to turn things around, and things are getting worse, not better, in the short run. But we feel that the steps management is now taking, including the beefing up of the sales staff, will help in the long run. However, the turnaround is going to take a long time.
With nearly $3 per share in cash and a strong parent company, WGTI is not going bankrupt, but it isn't time to buy more of its stock, either. Wait until thecompany shows positive earnings before getting back in.
(Posted on 9/24/97 with WGTI trading at $10.13) |
