Expect IRF to guide down again substantially...if they don't it is a lie...when all is said and done IRF earnings still have a long way to fall...look at FCS, IFX, STM, ONNN all their competitors experiencing big price declines and margin erosion. Nobody on this board expects earnings to go down...what will you do when they do???
FCS is going to earn .20 in '01 and .35 in '02, trading at a P/e of 112.77 for '01 and for 62.83 for '02. Yet after they announced, they went UP 12.5% (yesterday and today).
IRF is going to announce. They are tracking to earn 2.27 in '01 and 1.32 in '02 (based on latest numbers). IRF is at p/e of 15.3 for '01 and 26.39 for '02.
We shall see what guidance management brings, but if it is inline with these reduced expectations, then I see the price retracing upwards. Even if guidance is not rosy, that information is not new and already priced into the stock price. Negative news brought the stock back into the base, but I do not think it will be that catastrophic to drop us below this trading range. IMHO.