AI
Friday, September 14, 2007 7:45:47 PM
BRLC 40% of float being short..I bet she bounces next week :)
Syntax-Brillian Hit By Credit Crunch
Andrew Farrell, 09.13.07, 11:02 PM ET
Fallout from the credit crunch will dim Syntax-Brillian's sales outlook, the LCD television maker revealed in a delayed earnings release.
Syntax-Brillian (nasdaq: BRLC - news - people ) shares slid 34.6%, or $2.12, to $4.01, on Thursday because of the disappointing sales prediction. The company expects first-quarter sales between $170.0 million and $180.0 million. Analysts polled by Thomson Financial were expecting sales of $256.6 million.
Syntax-Brillian blames the weaker guidance on the credit crunch roiling financial markets. Some companies are having trouble borrowing money because lenders have become increasingly risk averse. Syntax-Brillian said that financing is drying up for its Asian suppliers, which throttles the company's television production.
The bad news from Syntax-Brillian was actually good news for many of the investors following the stock. An unusually high proportion of the company's shares are being short sold. As of August, over 40% of the its publicly traded shares were shorted.
This isn't the first time that Syntax-Brillian has run into money problems with its Asian partners. At one point, Syntax-Brillian's Asian distributor, South China House of Technology, fell behind on payments. (See: "Syntax Shorts Squeezed")
Tristan Gerra, an analyst at Baird, saw a bright spot in the supplier problems. He said the issue does not change the strong demand for the company TV's, which are sold under the Olevia brand name. Gerra has an "outperform" rating on the stock.
The company also announced late Wednesday weaker-than-expected quarterly results. Syntax-Brillian swung to a fourth-quarter profit of $8.4 million, or 11 cents per share, from a loss of $5.5 million, or 11 cents per share, a year ago. Analysts polled by Thomson expected earnings per share of 12 cents for the quarter ending June 30.
Syntax-Brillian Hit By Credit Crunch
Andrew Farrell, 09.13.07, 11:02 PM ET
Fallout from the credit crunch will dim Syntax-Brillian's sales outlook, the LCD television maker revealed in a delayed earnings release.
Syntax-Brillian (nasdaq: BRLC - news - people ) shares slid 34.6%, or $2.12, to $4.01, on Thursday because of the disappointing sales prediction. The company expects first-quarter sales between $170.0 million and $180.0 million. Analysts polled by Thomson Financial were expecting sales of $256.6 million.
Syntax-Brillian blames the weaker guidance on the credit crunch roiling financial markets. Some companies are having trouble borrowing money because lenders have become increasingly risk averse. Syntax-Brillian said that financing is drying up for its Asian suppliers, which throttles the company's television production.
The bad news from Syntax-Brillian was actually good news for many of the investors following the stock. An unusually high proportion of the company's shares are being short sold. As of August, over 40% of the its publicly traded shares were shorted.
This isn't the first time that Syntax-Brillian has run into money problems with its Asian partners. At one point, Syntax-Brillian's Asian distributor, South China House of Technology, fell behind on payments. (See: "Syntax Shorts Squeezed")
Tristan Gerra, an analyst at Baird, saw a bright spot in the supplier problems. He said the issue does not change the strong demand for the company TV's, which are sold under the Olevia brand name. Gerra has an "outperform" rating on the stock.
The company also announced late Wednesday weaker-than-expected quarterly results. Syntax-Brillian swung to a fourth-quarter profit of $8.4 million, or 11 cents per share, from a loss of $5.5 million, or 11 cents per share, a year ago. Analysts polled by Thomson expected earnings per share of 12 cents for the quarter ending June 30.
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