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Technology Stocks : p-com (pcms) -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (616)	5/29/1998 5:00:00 PM
From: nickscores	Read Replies (1) \| Respond to of 1461

The implication from the story below is that P-COM is falling on ERRONEOUS speculation about the REMEC announcement. The article seems to say that P-COM is NOT the problem. This is yet another buying opportunity for a stock that just hasn't gotten the recognition it deserves. OMPANY NEWS & RESEARCH Return to Company Headlines (UPDATE) Remec Shares Hit 52-Week Low; Some Customers May Trim Orders Dow Jones Online News, Friday, May 29, 1998 at 16:51 NEW YORK -(Dow Jones)- Shares of Remec Inc. plunged to a 52-week low Friday after the company said in a conference call with analysts that it expects demand adjustments from some of its customers. Speculation about who those customers also may have dragged down shares of Innova Corp., Digital Microwave Corp. and P-Com Inc., which together constitute about 30% of Remec's total revenue, said analyst Arindam Basu of Genesis Merchant Group Securities. Since Innova recently reported that its April revenue fell short of expectations and Digital Microwave said a slowdown in new orders has them taking steps to lower costs, investors suspect these two may be the Remec clients adjusting their orders. P-Com also was under pressure Friday, Basu added, although that company hasn't made any announcments of late. Remec, which provides modules for microwave transmission systems used in the defense and telecom markets, Thursday posted first-quarter earnings of 19 cents a diluted share, matching analysts' estimates and above the year-ago profit of 11 cents. At the close Friday, shares of San Diego-based Remec (REMC) were off $6.50, or 31%, at $14.375. Earlier, the shares traded as low as $13.813, well below the previous 52-week low of $15.75 set Jan. 9. Innova shares (INVA) fell $2.125, or 20%, to end at $8.625, after falling to as low as $8.375; Digital Microwave (DMIC) gave up 71.9 cents, or 6.9%, to end at $9.656; while P-Com (PCMS) lost $2.125, or 12%, to finish at $15, after falling to as low as $14.875. "Business is going great at Remec. They are just having some near-term hiccups from some of their customers, and they were just trying to position themselves to be cautious," added Basu, who rates the shares a "buy." No comment was immediately available from officials at any of the four companies. - By Tara Siegel; 201-938-5176 Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.