Asian Contagion hits CFMT -- down +3.
CFM Comments on Preliminary First Quarter Results and Near Term Outlook
WEST CHESTER, Pa., Jan. 27 /PRNewswire/ -- CFM Technologies, Inc. (Nasdaq: CFMT - news) today announced that a Korean semiconductor customer has requested that shipment of two Full-Flow systems previously anticipated for shipment in the first quarter of fiscal 1998, ending January 31, 1998 be rescheduled. These two systems represent $4.9 million in sales.
Although discussions with the Korean customer are continuing, the Company believes that it is highly unlikely that these two systems will ship this quarter. Based upon the likelihood of this postponement, the Company now anticipates that it will report a loss for the quarter with net sales below fourth quarter fiscal 1997 net sales of $17.9 million.
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My expectations for this quarter earnings was for disappointment arising from the drop in Asian orders to finally set a bottom for these stocks in the semi equip sector. I'm looking for further downside culminating in a selling frenzy that should mark the bottom for the sector. But, I think it should occur on a case by case basis, rather than hitting all stocks at once, as has been the case from Oct. to Jan so far.
It may be worth the risk to get a little CFMT at 12 1/2. The long term chart points to support at this level.
quote.yahoo.com
-Kevin |
