Linda, BE CAREFULL!!! Here's an article from WALLSTREETLINKS.COM.
GLENAYRE TECHNOLOGIES INC. (GEMS) 9 15/16 -2 3/16.
Once a high flyer, this developer of personal telecommunication systems has
been downsized to a mere shadow of itself. While the stock has been
back peddling for the past couple of years, there hopes were perked after it
reported its Q1 results in April that GEMS was beginning to put back
the pieces back together that made it a Wall Street darling just a few
quarters ago. Unfortunately, this is not happening or occurring fast enough,
and thus the stock continues to shed more value. Last night GEMS reported
that it earned nil in Q2, well below Wall Street expectations of $0.15 a
share, as net sales decreased 26% to $81.9 million from $110.2 million,
and from $94.5 million in the quarter prior. And while management feels
that it has addressed its manufacturing problems, GEMS also warned that
due to continued weakness in Asia and in its mobile/fixed network
products, it was lowering revenue forecasts which "will result in
decreased earnings potential for the company in the second half of the year,
causing a shortfall from the current second half analyst consensus earnings
estimates." The news, while not shocking given the unraveling of the Asian
market, is nonetheless disappointing given the hopes that were raised after
its March quarterly results. In fact, the latest earnings disappointment has
left the stock very near its most recent low of $9 11/32 reached in the
Spring of 1997. The earnings disappointment has also prompted Goldman
Sachs to downgrade the stock from "trading buy" to "market perform" as it
feels that management has executed poorly and caused its confidence level
to remain very low. Given the outlook the company foresees, this issue has
been relegated to purgatory with little hopes for redemption.
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