From Briefing.com
READ-RITE CORP. (RDRT) 7 3/4 -9/16. If the shares of this disk-drive components maker could fall further they would, but having already lost close to 75% of its value since last September, there is little blood left to squeeze from this stock. In a not too surprising fashion, today RDRT warned that it expected fiscal Q3 sales to be sequentially flat with Q2 level of $187 million as conditions in the magnetoresistive recording heads market for rigid disk drives remain very difficult. However, it expects its loss for the quarter to be narrower than the loss posted in Q2 of $1.29 a share. Still, given that Wall Street was projecting a loss of $0.51 in Q3, versus a profit of $0.64 a share in the year-ago period on revenues of $310 million, the loss in Q3 will be greater than had been anticipated. The news of the earnings and revenue miss are not too shocking, but nonetheless, disappointing given the turmoil this sector has experienced in the past year. The stock has certainly been on a roller-coaster ride the past two years, but recently it has been all downhill as the sector in general has experienced a sharp decline in demand due to the inventory glut in the PC market. Certainly, the near-term outlook is for more of the same, which does not bode well for the stock as it currently trades below the low point reached in late 1993 of just under $10 a share.
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