Don't know why the drop in Elexsys.
The Motley Fool printed a synopsis of their last Q earnings conference call which you can read at this URL:
fool.yahoo.com
A lot of the ECM stocks have been getting beat up due to the ongoing correction in networking and telecom stocks, which I happen to believe is unjustified. My logic is spelled out at a post on ACTM thread:
techstocks.com
Today Solectron was hit, and ACTM and CMCI were hit last week; they all do significant board assembly for networkers and telecom. In fact, the whole ECM sector has been weak the couple of weeks, with the exception of DIIG, as you are aware.
Elexsys sells to Solectron (for SLR's final customers) and directly to Cascade, according to the report above. So maybe its getting caught up in the overall selling. I think the whole sector is getting beaten unfairly. I still think we are in an industry expansion phase and should be for the next 12-18 months at least. The networking and telecom stocks are getting hit because of margin concerns. Well, at least this is my opinion.
I saw Merix slide and almost pulled the trigger, except I think it will be bottoming here for awhile, and won't bounce back as quickly as it did from a similar sell-off at the last earnings report in December. I sold most of my stake and only have a small position acquired at 15. The CEO is Debi Coleman, the COO resigned, so they don't have a COO. The guy who resigned was a key figure in helping the company emerge from the Tektronix spin-off I understand. I don't consider this good news, no matter how attractive the start-up opportunity. I think the guy who resigned thinks maybe it will take longer than most think to get this company turned. Might get a ST bounce to 15-16 range, but I see better places for my money right now.
To the thread:
I missed a short sell opportunity. Sigmatron(SGMA) was taken out and shot today. The stock had doubled from last fall. They have one major customer who makes Carbon Monoxide detectors. Forbes last month came out with an article and said that the things don't work. Also, these devices have almost all their sales in late fall and early winter. So the fall/winter quarters are the strongest sales we should see from the company for a while (the latest Q earnings are due out next week). I looked for a news release, but didn't find one, but it wouldn't surprise me if some analysts downgraded this stock today based on weak earnings projections for the next two quarters. From what I can tell this stock is favored by some mo guys who follow IBD buying principles.
Paul |
