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Strategies & Market Trends : Quarter to Quarter Aggressive Growth Stocks -- Ignore unavailable to you. Want to Upgrade?

To: pass pass who wrote (1538)	1/25/2001 9:10:44 AM
From: Jack Hartmann	Respond to of 6932

JNI jitters: So despite the company's claims to the contrary back in November when I first mentioned possible troubles at JNI (JNIC:Nasdaq - news - boards), the company just reported first-quarter earnings in line with expectations, but its inventories were a bloated 136 days. Bloated inventories aren't good in a supposedly fast-growing company. But who said JNI is fast-growing? The company cites strong year-over-year growth, but sequentially the fourth quarter was up just 2% from the third quarter, and the company has guided analysts to expect (if you extrapolate what he says) down to flat earnings next quarter from the just-reported fourth quarter. What's more, CEO Neal Waddington said that gross margins "may be a challenge" in the first half. (Did he say the "C" word? Regular readers of this column know what that means. For irregular readers, the word "challenge" is a euphemism for "expect the worst.") From Herb Greenberg. thestreet.com I would go with the sector leader EMLX who is growing vs. JNIC. Herb has many short buddies so he get manipulated easily. This being said, I remember the flat growth sequentially not fitting the 10% growth each quarter model so there might be something there. I am seeing y2y growth broadcasted and the sequential growth hidden in many earnings releases this quarter. Just a thought. Jack