A response from Viasat's investor relation to its stock's recent trend:
Dear Mr. Huynh,
While the trend in price is not what anyone wants to see, there have
been no fundamental changes at ViaSat that would account for the drop.
Our last announcement was our earnings on Oct. 28, which were on
target and also showed increasing growth in our commercial revenues.
Since then we appeared in the November 3 issue of Forbes as one of
their "Top 200 Best Small Companies", and were singled out as one of
their "10 to watch."
Since our earnings announcement, the analysts covering us have not
changed their ratings - all are buy or strong buy - other than
Unterberg, which upgraded us from a long-term buy to buy based on the
lower stock price, and lower P/E.
When the stock was in the low $20s, and P/E was up over 40, the
consensus was that it was ahead of itself. To see it come down some
was not a surprise to management.
Management also feels that the company has been tied to the downturn
in Asia-Pacific markets, even though only a very small portion of our
commercial revenue is coming from there at this time.
Overall the market seems to be wanting to see a major commercial
contract before it is really sold on the fact that future growth of
the company can match our past success.
Thanks for your interest in ViaSat.
Regards,
Bruce Rowe
Investor Relations
______________________________ Reply Separator _________________________________
Subject: Stock DIVED?
Author: "Jimmie Huynh" <jhuynh@worldnet.att.net> at internet-gateway
Date: 12/1/97 7:51 PM
To whom it may concern:
I wonder if someone could provide some comforting words as to why Viasat
stock keep plummeting with no "publicly annouced" bad news? Has there been
any such news leaked into the market?
In fact, Viasat has dropped approximately 40% from its peak in less than
two months.
As a big believer of Viasat's technology and an admirer of its management,
I find it hard to believe that the recent performance is any reflection of
the company's value.
I and many of my fellow investors in Viasat would appreciate very much any
justifications of the company's current stock value. Thank you very much
for your time.
Sincerely,
A very disheartened investor
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From: "Jimmie Huynh" <jhuynh@worldnet.att.net>
To: <ir@viasat.com>
Subject: Stock DIVED?
Date: Mon, 1 Dec 1997 19:51:28 -0800
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