To All.........here is the info behind the Dow Jones stories.... Once you read it you may feel the same as I do about today's BS sell off. I think the 2nd paragraph is pretty clear. " no comment on company proformance till earnings release"......guess someone wanted to buy at lower prices.
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Dow Jones Newswires
Fore Systems Down 13% On Rumors Of 3Q Prerelease
Dow Jones Newswires
By Joelle Tessler
NEW YORK (Dow Jones)--Shares of Fore Systems Inc. (FORE) are down 16% on rumors that the company could warn that results for its fiscal third quarter, which ends this month, will miss expectations.
Fore has been in a quiet period since Dec. 15 and does not plan to comment on the state of its business until it releases its earnings sometime in mid-January, a company spokesman said.
According to First Call Corp., the consensus estimate on the networking company is currently 10 cents a share, flat with year-ago results.
Several analysts said Fore's silence has contributed to worries that it could "prerelease" disappointing numbers for the quarter, particularly since the company did so last quarter.
"They're not returning phone calls, so people aren't getting comfort from the company," said Nationsbanc Montgomery Securities analyst Alfred Tobia.
Another analyst added this is the first time that Fore has been so tight-lipped with Wall Street at the end of the quarter.
Fore's shares were recently down 2 7/8, or 15.4%, at 15 13/16 on Nasdaq volume of 8.8 million, compared with average daily volume of 3.3 million.
Despite Tuesday's worries that Fore could miss earnings estimates for its third quarter, Nutmeg Securities analyst Andy Schopick said "all of the signals from Fore coming out of last quarter" were that bookings were strong and that the company had worked through the problems that tripped it up in the fall.
Although demand and bookings were strong in the second quarter, the company couldn't get certain products out the door before the end of the period since orders were back-end loaded.
According to Montgomery's Tobia, Fore's most recent comments, in mid-December, indicated that "business was tracking on plan," although the company would be in "book-and-ship mode" through the holiday season
Joelle Tessler; 201-938-5285 |
