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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: BRANDYBGOOD who wrote (61877)	9/17/1999 5:23:00 PM
From: kendall harmon	Read Replies (1) \| Respond to of 120523

AVS-brandy, here is some info. Looks like it may bounce. Aviation Sales Falls Amid Concerns Over Delays, Costs (Update1) (Adds analyst comment; updates shares.) Miami, Sept. 17 (Bloomberg) -- Aviation Sales Co. shares fell as much as 31 percent amid concerns that the aircraft-parts distributor's third-quarter earnings could be lower than expected because of delays and increased costs. The shares fell 8 3/8 to 21 in late trading of 2.5 million, more than 11 times the three-month daily average. Earlier the shares touched 20 3/8. Aviation Sales is incurring higher-than-expected costs for the recent expansion of its maintenance and repair business, Salomon Smith Barney analyst L. Keith Mullins wrote in a report. The company also may be experiencing delays in the lease or sale of its five Airbus Industrie A-300 aircraft, Mullins said. Even so, the stock plunge is an overreaction, said Warburg Dillon Read analyst John Pincavage, who has a ''strong buy'' rating on Aviation sales. The company's main business is performing well, he said. ''There's absolutely no reason for this stock to be doing what it's doing,'' Pincavage said. Miami-based Aviation Sales couldn't immediately be reached for comment. The company is expected to earn 71 cents in the third quarter, the average estimate of five analysts surveyed by First Call Corp. The failure to lease the refurbished aircraft could cost Aviation Sales $200,000 to $250,000 a month in revenue, wrote Mullins, who rates the stock ''buy.'' The company also will have to absorb the cost of higher inventories.