Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: ChiTao who wrote (1537)	3/31/1998 9:15:00 PM
From: Starowl	Respond to of 5944

ChiTao: You may still be right. This job reduction probably has little (if anything) to do with the merger. Would not be wise to make work force decisions based on an acquisition that hasn't been completed. (That also goes for analysts projecting earnings) As for a Q4 pre-warning, it may be a couple of weeks before they have a clear picture of the damage, if any. Job cuts directly affect people; need to make those announcements early as possible. Definitely agree on taking one big hit rather than a barrage. But the long term effect either way won't matter. Starowl

To: ChiTao who wrote (1537)	3/31/1998 9:45:00 PM
From: Larry J.	Read Replies (2) \| Respond to of 5944

<<Don't know why they didn't pre-warn Q4 earnings along with the job announcement?>> I just noticed that First call had 2 recent estimate revisions. Consensus is now @ .33 (high .40, low .26) down from .38. One could assume that management has been (is) giving analysts (at least a few)guidance so they can quietly lower their forecasts averting an outright miss. This strategy worked well for COMS (was lowered to .14 from much higher in the weeks and days before earnings). They still missed the number by a longshot but the sell-off was minor. Any further downward revisions between now and earnings should actually be helpful. (like the idiot @ .40!) Perhaps lack of an announcement today is indicative that they feel they can make the revised #. BTW, I'll take some blame if we sell off further tomorrow. (Bought today @ 20.06, couldn't wait for my $19.5 forecast) My timing sucks, I bought BAY a few weeks ago on the day they warned (25.625). It ended up working out fine. Hope to dodge another bullet. Larry