One sentence from the article which hasn't been discussed (much) here:
<<"There is a product transition issue, so the company has always been very cautious," he continued, adding that he met recently with U.S. Robotics executives. >>
Might have been over-reaction from the Needham analyst: the company was just cautious, not pessimistic. Usrx officials should have learned to be more judicious in what they say and how they say it. Last quarter, similar violent stock price reaction was attributed to their comment regarding channel stuffing. But I agree with some poster that this analyst's comment probably didn't account for all the downward pressure today. msft, csco both down over 3 pts. altr, atml, ifmx which were up strong yesterday were also down today.
Another (frivolous) coincidence: yesterday I received in the mail an ad from Garzarelli's newsletter. For those who don't know who this woman is (like me until yesterday), she claimed to have predicted on TV the 87 crash just a week before it happened. In any case, outside the envelope was 'SELL NOW: all your stocks and mutual funds' stamped in big red letters; inside explanations for why she think a bear market is imminent. Maybe her market-timer subscribers heeded her prophesy. |
