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Technology Stocks : JPM Co. (JPMX, formerly JPMC) -- Ignore unavailable to you. Want to Upgrade?

To: Instock who wrote (148)	1/27/1998 5:50:00 PM
From: Instock	Respond to of 157

Another Good Short Term Short sell ! JPMX "Net income fell to $.8 million after a $.4 million write-off of expenses related to the cancelled secondary offering or 11 cents per fully diluted share (15 cents per share before the charge related to the cancelled secondary offering) compared to last year's first quarter net income of $1.8 million or 24 cents per share. " ''We have been faced with higher than usual costs related to new customer and new product start-ups, interplant transfer of programs and higher fixed costs necessary to support not only the current size of the organization, but our future growth as well.'' "Unfortunately, the higher level of revenues did not materialize as orders slacked off toward the end of the quarter." "We expect our operating margins to continue to be under pressure for the next several quarters while we work through some of the lingering program start-up issues." ''In the near term, we expect second fiscal quarter revenues to be slightly lower than our first fiscal quarter revenue. We are evaluating our cost structures against our expectations of growth.'' biz.yahoo.com "The JPM Co. (Nasdaq:JPMX - news) said it expects fiscal 1998 second quarter revenues to be ''slightly lower'' than first quarter revenues of $31,500,000." "JPMX also said it expects operating margins to continue to be under pressure for the next several quarters due to an increase in its fixed costs." Instock

To: Instock who wrote (148)	1/27/1998 6:30:00 PM
From: Roadkill	Read Replies (1) \| Respond to of 157

At this point, I'm not sure how profitable a short on JPMX would be. I normally like to short grossly overvalued stocks, and I shy away from shorting crushed tech stocks like this -- the market often reacts so violently that the best move is already gone (-40% today!). If you do go short, however, there shouldn't be too much downside. I doubt this woofer will go above 14 or 15 for quite some time, barring substantial news. One positive note (for longs) in the earnings report: revenue continues to grow at 18-20% despite the company's margin problems. Even next Q, revenue should be up in the high teens (I think 1Q '96 had about 24MM vs. projected ~30MM this year). Of course, much of this growth is due to the Denron acquisition. In any event, once these margin problems get resolved, it should be pretty easy to crank out some decent quarters. That may take quite a while, though. Best of luck. Matt