thnk down 30% today sinking ship not short buster
Think New Ideas Plunges After Analyst Slashes Earnings Estimate
New York, Sept. 9 (Bloomberg) -- Think New Ideas Inc. shares fell as much as 35 percent after an analyst at Prudential Securities Inc. slashed his estimate for the Internet company's earnings in the current quarter.
The company's shares fell 3 5/16 to 7 13/16 in midafternoon trading of 2.98 million shares, five times average three-month volume. Earlier, they traded as low as 7 1/4. In April, the stock reached a 52-week high of 39 1/4.
Analyst James Dougherty cut his estimate for net income for the first quarter ending Sept. 30 to 1 cent from 8 cents, after a discussion with management on Thursday. In a report issued early today, he wrote that he expects the small profit to come from interest income.
Dougherty said company executives expect first-quarter revenue to fall $1 million to $2 million below their internal estimate. He cited the impact of the Asian economic crisis on high tech clients like Oracle Corp. and Hewlett-Packard Co.
He also cut his recommendation to ''hold'' from ''accumulate.'' Dougherty was traveling and unavailable for immediate comment. Think New Ideas executives weren't immediately available for comment.
The average forecast is for earnings of 10 cents a share, based on a survey of five analysts by First Call Corp.
In a company-sponsored conference call on Aug. 6 announcing fourth-quarter results, Dougherty complained he didn't receive Think New Ideas' earnings press release until near the end of the call. The release wasn't widely distributed until hours later. ''We're doing business in the dark,'' he told call participants.
He lowered his fiscal 1999 earnings estimate to 55 cents from 64 cents.
Think New Ideas hasn't yet filed its 10-K report for fiscal 1997, which is due at month's end. During the conference call, Chief Financial Officer Melvin Epstein said that the fiscal 1998 audit would be completed before the end of August.
Think New Ideas fell 24 percent on May 26, after co-founder and chief executive Scott Mednick resigned to pursue a career in philanthropy, only to join another Internet company, X-Ceed Inc. as co-chairman and chief strategic officer, two months later.
13:39:26 09/09/1998 |
