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Methode Electronics (METHA) Message Board

  • suzni_99 suzni_99 May 16, 2001 9:12 AM Flag

    they warned on STLW, not METHA core


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    • In addition, Metha will take a 11-13 million dollar charge against earnings in Q4 for investment restructuring and write-off of excess inventory. With GM reporting an extremely poor automotive sales decline there is some concern regarding their core business sustanability. All I'm saying is this next earnings report may be negative to the stock price.

      • 1 Reply to legwork10
      • legwork, I would agree that next quarter's earnings might not be pretty, however I do not think it will be detrimental to the stock price. Next quarters crappy earnings are expected. Remember, METHA is in a cyclical industry and the buy opportunities for cyclicals are when things are real bad. If METHA in their conference call says 'things are looking better', then METHA will take off.

        Take a look at a METHA competitor, PRLX, which announced earnings on Monday. They were excpected to LOSE .07, but they LOST .25, and their sales were down. But they said that sales should be up next quarter. Despite missing their numbers by a wide margin their up a good amount (30 percent in one week). And remember, PRLX loses money while METHA makes money.