VDSI down 23% pre-opening-WHY?

Discussion in 'Stocks' started by luckyluciano, Oct 25, 2007.

  1. Earnings news release looks very good-What gives? Buy opportunity for VSDI to come back just like when GRMN sold off recently??? Opinions!?
  2. Down 30% wow...OVERSOLD?
  3. They guided down I think.
  4. They missed consensus EPS estimates by $0.02. Est was $0.17, reported $0.15. So is it oversold? You be the judge.
  5. Thats why I tend to avoid stocks with market caps less than 7 billion
  6. Why does that matter?
  7. Anybody poking around the dead body ???
    This is from the eleventh.

    NEW YORK -

    Shares of Vasco Data Security International Inc. rose Monday morning after a Friedman Billings Ramsey analyst upgraded the network security products maker, saying its stock has been oversold and the fourth quarter will be strong.

    Vasco shares have lost almost half their value since Oct. 24, including a 34 percent plunge on Oct. 25, after its third-quarter profit and revenue came up short of Wall Street estimates.

    Daniel Ives became the fourth analyst in recent weeks to upgrade the stock to "Buy" or the equivalent due to the selloff. He raised his rating to "Outperform" from "Market Perform," and kept a price target of $33 per share.

    The stock rose $1.39, or 6.5 percent, to $22.66. Shares closed at $39.56 on Oct. 24.

    Ives raised his fourth-quarter sales and profit estimates, and said the company is "back on track." He added that Vasco's results have not been hurt by uncertainty in the U.S. credit markets because it does much of its business in Europe.

    "In its bread and butter European market, we believe Vasco is continuing to see good deal flow from both new and existing customers," he said.

    The analyst now expects Vasco to earn 20 cents per share on $36.2 million in revenue for the quarter, up from 19 cents per share on $33.7 million. Ives' estimates match the expectations of analysts polled by Thomson Financial.

    Nine analysts now rate Vasco shares at "Buy" or the equivalent, while five give a "Neutral" rating and one a "Sell" rating.

    >>> SI