Bobby:
I have not seen any downgrade of the stock. As far as I can tell only two analyst are following this stock and both have kept their buy rating in place.
The following quote from the latest press release is the reason the market place has looked negatively on this stock. However remember that we are currently in the fourth quarter of CLTK's 1997 fiscal year now. This means we are looking at one maybe two slower quarters at most. Most of this companies sales come from about 5 customers who use them as a OEM (about 80% or more). As long as these sales remain stable earning should remain at past levels. The growth rate may be slower than what the market is expecting. Their principle customers are Gilat Satellite Networks, Hughes Network Systems, Loral, California Microwave, and Clarion. The best thing about this company is that it has no long term debt. So the fundamentals are in place for this next year. One slow quarter should not impact the 1997's fiscal year earning dramatically, and so far the first half of 97 has been a good year. Lets see what the third quarter earnings show. They are do out some time this month. Here is the quoute.
"We are delighted with the new VSAT contract and that we have broadened our relationship with a market leader such as P-COM in the development of these higher level assembly products for the growing wireless communications market," said Tamer Husseini, president and chief executive officer of Celeritek. "However," he added, "Several factors will impact our financial performance through the first quarter of 1998. "These factors include later than expected placement of several key orders, a slower than anticipated ramp up in certain of our manufacturing areas and a gradual shift in product mix as demand for semiconductor products increases," he added. To address these factors and to capitalize on opportunities in the semiconductor area, Hussein said the company will be making significant investment in its Gallium Arsenide (GaAs) operations.
Good luck,
Robert |
