I have heard from some folks at PHS that they are not meeting their numbers and even with this cut, it is unlikely they will make their numbers for the year. Watch the stock to fall below 30's. Good time to short or buy when it is low.
Lay offs are across all functional units, unless your department has an exemption. So far, most of what I heard took place this week. If your department can cut 10-15% expenses, you do not have to do lay offs.
I havn't bought PHS yet. I think it is going to be a good investment but I do not like it from a technical aspect yet. It couldnt stay above the downtrend line which makes me think this was a false breakout and there may be more downside in the stock. It could see the 20's if we dont get some volume buying here. Seems to be a little overhead supply. I could be wrong but I am waiting.
For the past 3 years I have made a bundle with this stock. Just follow the rule-buy low and sell high-buy low and sell high- and I do this frequently with this stock. They seem to do a lot of reorganizations with layoffs usually by OCT,DEC,MAR,and JUNE. I'm s/w concerned about their cash flow for the year end but the 3rd quarter results should be OK!