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Technology Stocks : Aviat Networks
AVNW 23.29-3.6%3:59 PM EST

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To: The Ox who wrote (180)8/11/2008 5:45:40 PM
From: Rob Preuss   of 312
 
The share price seems to be recovering, somewhat, already.

As disappointing as it is to discover accounting errors like this, the fact is that every stock trades on the future... not on the past. So, as long as investors believe that such errors have been fixed (and won't re-occur), I think the share price will recover from the accounting issue fairly swiftly.

The other issue weighing on the share price are the increased costs which reduce profitability. I think this is the area to watch when HSTX does finally produce their quarterly financial results (and updated financial results for previous periods). If these increased costs appear to be temporary, I think the share price will rise based on the bright revenue prospects. If they appear to be deeply entrenched, I think the share price will be stuck down at this level for some time to come.
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