|
Dennis,
I am sure you know the reason:
BMC Industries Shrs Plunge 44% On 4Q Outlook
By Hue Ha
NEW YORK (Dow Jones)--Shares of BMC Industries Inc. (BMC) plunged 43%
Wednesday on heavy volume after the company warned that fourth-quarter
earnings will come in at less than half of Wall Street expectations.
The Minneapolis producer of aperture masks for TV and computer color
picture tubes expects per-share earnings of 22 cents to 26 cents,
compared with analysts' estimates of 54 cents to 55 cents.
BMC - which also makes polycarbonate, glass and plastic eyewear lenses -
spoke with analysts for more than two hours on a conference call
Wednesday.
"Obviously, estimates are going to come down," said one analyst, who
declined to be quoted because he doesn't have his "arms around the
issues" without further discussions with the company.
In a press release, BMC said, "a significant portion of the change from
prior estimates is attributable to a conscious decision on our part to
invest for BMC's future," which should lead to significant improvements
in 1998.
The company also blamed the shortfall on the startup of a facility in
Hungary and lower sales, which it called a temporary situation caused by
"a number of independent factors."
BMC said it expects sales of its television masks to be lower for the
fourth quarter, despite a new production line in its Cortland, N.Y.,
facility.
BMC's NYSE-listed shares were trading down 13 9/16, or 43.9%, at 17 5/16
on volume of 3.4 million, compared with a daily average of 99,400.
Earlier, the stock hit a new 52-week low of 17 3/16, below the previous
trough of 24 set April 21.
I suppose the question is will it bounce? I do not have enough feel for the company.
Glenn |
