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It isn't the Q2 earnings report driving the selling. It's this comment:
''We experienced increased revenues from our largest customer in the second quarter, but the most recent forecasts which we just received indicate that third quarter shipments will be lower, due to changing product mix and demand,'' Borelli stated.
The problem of heat dissipation for computer manufacturers has not disappeared. The company will have to shift its sales efforts away from Intel and over to computer manufacturers who are producing the under $1,000 PCs that are taking a larger portion of the computer market. I believe this drop in price is completely overdone! Unless, of course, someone can show that AATT has lost its competitive edge in the heat dissipation market. A definite buying opportunity for the long-term investor.
<< But it seems a bit unusual to see the stock value cut in half over remarks like that. >>
You're surprised? I'm not. It's SOP for tech stocks. ADIC made a similar announcement and its down 30% today. Or look at what happened to AFCI at the beginning of the month.
I owned a little Rainforest Cafe when the company announced same store sales had dropped a couple points, and the Street cut that one in half. Still hasn't recovered, despite continued growth in the 40% - 50% range.