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Technology Stocks : Glenayre Technologies(GEMS)- a pure cellular PCS play? -- Ignore unavailable to you. Want to Upgrade?

To: Linda Kaplan who wrote (2760)	7/19/1998 4:22:00 PM
From: SIMember0123456789	Read Replies (1) \| Respond to of 3431

Linda, BE CAREFULL!!! Here's an article from WALLSTREETLINKS.COM. GLENAYRE TECHNOLOGIES INC. (GEMS) 9 15/16 -2 3/16. Once a high flyer, this developer of personal telecommunication systems has been downsized to a mere shadow of itself. While the stock has been back peddling for the past couple of years, there hopes were perked after it reported its Q1 results in April that GEMS was beginning to put back the pieces back together that made it a Wall Street darling just a few quarters ago. Unfortunately, this is not happening or occurring fast enough, and thus the stock continues to shed more value. Last night GEMS reported that it earned nil in Q2, well below Wall Street expectations of $0.15 a share, as net sales decreased 26% to $81.9 million from $110.2 million, and from $94.5 million in the quarter prior. And while management feels that it has addressed its manufacturing problems, GEMS also warned that due to continued weakness in Asia and in its mobile/fixed network products, it was lowering revenue forecasts which "will result in decreased earnings potential for the company in the second half of the year, causing a shortfall from the current second half analyst consensus earnings estimates." The news, while not shocking given the unraveling of the Asian market, is nonetheless disappointing given the hopes that were raised after its March quarterly results. In fact, the latest earnings disappointment has left the stock very near its most recent low of $9 11/32 reached in the Spring of 1997. The earnings disappointment has also prompted Goldman Sachs to downgrade the stock from "trading buy" to "market perform" as it feels that management has executed poorly and caused its confidence level to remain very low. Given the outlook the company foresees, this issue has been relegated to purgatory with little hopes for redemption.