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Technology Stocks : Aviat Networks -- Ignore unavailable to you. Want to Upgrade?


To: The Ox who wrote (180)8/11/2008 5:45:40 PM
From: Rob Preuss  Respond to of 312
 
The share price seems to be recovering, somewhat, already.

As disappointing as it is to discover accounting errors like this, the fact is that every stock trades on the future... not on the past. So, as long as investors believe that such errors have been fixed (and won't re-occur), I think the share price will recover from the accounting issue fairly swiftly.

The other issue weighing on the share price are the increased costs which reduce profitability. I think this is the area to watch when HSTX does finally produce their quarterly financial results (and updated financial results for previous periods). If these increased costs appear to be temporary, I think the share price will rise based on the bright revenue prospects. If they appear to be deeply entrenched, I think the share price will be stuck down at this level for some time to come.



To: The Ox who wrote (180)8/26/2008 4:04:00 PM
From: Rob Preuss  Read Replies (1) | Respond to of 312
 
We've seen a fairly steady uptrend in price on decent trading volume since the recent plunge on bad news. The result is that we've recovered about half of the share price loss that the bad news engendered.

I see this as an encouraging sign. The bad news was entirely about the past (and occurred under previous management) while it came coupled with good news about increases in current revenue and new orders. So the buyers are trusting that this bad news represents a history that won't be repeated, while simultaneously looking forward to the potential for a more positive future.

Hopefully HSTX will soon release revised financials that are in line with the ranges they projected and will couple this with additional evidence to support a positive future outlook. This would help keep the share price on a steady uptrend.

Rob