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intersting, to say the least. Last time I talked to them, the stock dropped to 17 and change, they were still planning it, after the release of 4Q earnings. I thought they were confident that 4Q will rocket the shares back to the 20s. Then a few weeks ago, one brokerage house cut estimate and the stock dropped to 15 area. Now withdraw the offering. If the purpose of the offering, as the company said, was to expand capacity, this withdraw means demand is dropping, which should not come as a big surprise as disk drive still counts 50% of AFLX's business, and in particular, SEG accounts for 17% of rev. in the 3Q. Unless the company gets financing from other sources to support its expansion, this seems to be bad news. As always, you can argue it's good news because there will be no dilution, etc. This morning they will release earnings, and the conference call will tell you the story. Any one has the number for the conference call? I will try to get up early to listen to the cc. |
