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Technology Stocks : EFII - Electronics for Imaging -- Ignore unavailable to you. Want to Upgrade?

To: unregmarket who wrote (539)	12/16/1997 10:47:00 AM
From: Arthur	Read Replies (1) \| Respond to of 1460

News from briefing.com on another Alex Henderson favorite: DANKA BUSINESS SYSTEMS (DANKY) 14 -17. It is becoming increasingly apparent that being a Wall Street analyst is a tough racket. Despite their strong relationships with executives of the companies they follow and the vast resources of the brokerage firms they work for, even Wall Street's elite take it on the chin a lot of the time. Today, Prudential Securities analyst Alex Henderson is taking his second thumping in less than a week, after Danka Business (one of Henderson's and Prudential's favorite stocks) warned that it will miss its quarter and expects to report a shortfall for the fiscal year. The 55% loss suffered by DANKY this morning comes less than a week after Electronics For Imaging (EFII), another Henderson favorite, fell more than 60% in one day after warning that it would also miss its quarter. According to Danka Business, an independent supplier of office equipment, 3rd qtr earnings will come in at approximately $0.21 to $0.24 a share, on revenues of $815-$825 million. Based on the current First Call estimate of $0.42 per ADS, the company's projection indicates an earnings shortfall of at least 43%. What's more, Danka is warning that full year bottom-line results will be at least 28% below the First Call mean view of $1.61 per ADS, at about the $1.11-$1.16 per ADS level. Danka is blaming the expected shortfalls on a global integration project (the "Uniting Danka Project") that is progressing slower than anticipated. Although his downgrade this morning of DANKY to "neutral" from "buy" comes a little late, it must be noted that Mr. Henderson played a key role in sending DANKY from $26.50 to $51 for the year; hence, those who got out before today, generally made money on this Henderson favorite.