Frank:
I disagree. You keep talking about this "leak", but it seems to be pretty common for companies to release a rough estimate of their quarter results before they have finished calculating. Yeah, the price started to fall before the press release, and that had me scratching my head for a few days, but I think that is also common. If we are going to play this game, we have to understand that insiders are called insiders for a reason. I'm not loading up on the stock while it's down, but I probably should be. I can't think of any reasons at all to sell now and take a loss though. Spectralink is a well-established company with a good product, and there is no reason at all why their stock should go any lower. Here is what two professionals said about Spectralink (a couple of weeks ago):
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* Hambrecht & Quist lowered estimates for SPECTRALINK CORP 3Q ending
in September to $0.01 a share from $0.07 and reduced revenue
estimates to $5.0 mln from $7.3 mln. Maintained buy rating. Cited
company's statement that Q3 revenues are likely to be significantly
below expectations. (Reuters 12:55 PM ET 10/03/96)
* Dain Bosworth analyst Charles Pluckhahn said he downgraded
SPECTRALINK CORP to hold from buy. Pluckhahn said the company, which
makes wireless telephones, is falling short of sales expectations.
(Reuters 02:50 PM ET 10/03/96)
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Yeah, things don't look great right now. But the company's technology is not standing still either. Remember that other press release where they announced new products? These looked good to me, and I tend to think they have a future ahead of them, at least long-term.
What will be interesting, however, is the short term. Third quarter earnings reports are scheduled to be out next Tuesday, and it will be very interesting to read, but even more so to see what happens with the stock. The way I see it, the stock has already taken its fall. Depending on the quarter results, it may stay where it is or go up, but I can't imagine it going much lower. But who knows?
Anybody else have comments?
-Dave |
