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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: JZGalt who wrote (7720)	6/15/1999 7:22:00 PM
From: JZGalt	Read Replies (1) \| Respond to of 18928

OT - JBL - Amazing... net income increased 41 percent gross profit increased 49 percent operating income increased 45 percent growth rates to exceed long-term growth objectives of 30 percent But traders focused on this... The Company said that growth rates for the fourth fiscal quarter may be less than previously anticipated due to last minute design delays on new products from two customers. The impact of these potential deferments could reduce expected fiscal fourth quarter revenue and earnings per share by as much as ten percent from prior expectations. It is anticipated that any growth delays on these new products would be recovered in the fall. According to guidance from the Company, growth rates for fiscal 2000 are positioned to exceed long-term growth objectives of 30 percent per year, based on currently booked business levels. Ok, the company reports they are going to slip 3-4 cents in the next quarter but make it up in the fall. The stock is now down 12 points in afterhours trading at $41 1/2. So they sliced off almost a billion dollars in market cap because the company is going to have earnings from the next quarter show up in the fall? Amazing how short sighted some people are in this market. Fair value of JBL is $39-$41, but JBL typically trades above fair value. Cheap is $28. ---- Dave