Safeskin Shares Fall After Salomon Smith Barney Cuts Rating
Bloomberg News
October 29, 1998, 8:13 a.m. PT
San Diego, California, Oct. 29 (Bloomberg) -- Safeskin Corp.
shares fell as much as 30 percent after Salomon Smith Barney
analyst Melissa Wilmoth downgraded the stock to "neutral" from
"buy" on concerns about sales growth.
Shares of the San-Diego-based glove products maker fell as
much as 7-3/8 to a 52-week low of 17-3/8 in trading of more than
8.5 million, about 15 times the stock's previous three-month
daily average. The stock was the fourth most active issue and
seventh biggest percentage loser on U.S. markets.
In her report, Wilmoth said she expected sales growth to
slow based on negative trends in the company's balance sheet
reported yesterday. While sales grew about 5 percent in the third
quarter, inventories at distributors and accounts receivable grew
dramatically, a sign of potential problems in the future, she
said.
Wilmoth wasn't available for further comment. Her 12-month
price target for the stock is $27 per share. Safeskin shares were
down 5-13/16 at 18-15/16 in recent trading.
Wilmoth cut her earnings estimate for the fourth quarter to
27 cents per share from 29 cents per share. For 1999, she cut her
estimate to $1.22 from $1.29.
Officials at Safeskin weren't immediately available for comment. |
