The following maybe the reason for the fallout.
Advanced Lighting Falls 25% on Concerns About Delayed Orders
Twinsburg, Ohio, Sept. 30 (Bloomberg) -- Advanced Lighting Technologies Inc. fell 25 percent, to its lowest level since shortly after its 1995 IPO, on concerns that earnings may be hurt by delayed lamp orders from some of its customers.
The Twinsburg, Ohio-based maker of metal halide lamps fell 2 7/8 to 8 1/2 in trading of 1.5 million shares, 10 times the three-month daily trading average. The company sold its stock to the public for $10 a share in December 1995, and saw the shares fall to 8 1/2 in January 1996.
Concerns that the slowing global economy has discouraged large lighting companies and lamp-makers like General Electric Co. and Philips Electronics NV from starting new projects and making orders led Raymond James analyst John Mahoney today to cut his rating on the stock to ''accumulate'' from ''buy.''
Mahoney also cut his earnings estimate for the first quarter ending this month to 18 cents a share from 20 cents. The company is projected to earn 22 cents a share, according to the average estimate of five analysts polled by First Call Corp. It earned 17 cents a share in the year-ago period.
Mahoney said in a report that the company, which had 1997 sales of $86.5 million, was overly optimistic in predicting that it would grow by 40 percent a year, when the entire metal halide industry grew 15 percent to 18 percent in the last several years.
''Internal growth, even with significant market-share gains, could not provide all of this projected growth,'' Mahoney said in the report.
17:54:00 09/30/1998
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