Even after a management quasi-shuffle in earlier months, Syntax-Brillian Corp. (NASDAQ:BRLC) has learned to keep disappointing.
Early this morning the distributor of Olevia LCD televisions cut its sales targets as its China business changes to a royalty-based model. It now expects sales for the current quarter to be in a range of $155 to $175 million. Unfortunately for shareholders, that compares to $242.4 million in the year-ago quarter and estimates of just over $300 million. The company has thus also lowered its fiscal June 2008 targets as well, but we won’t bore you with any further details.
We cannot blame a company for having to change its model, and we cannot blame a company if it has troubles merely in quarter meeting expectations. That is life in the investment world. But some companies, regardless of who runs them almost seem to have a culture of disappointing. That culture seems to be prevalent at Syntax-Brillian, and we’ve warned about its trust issues in the past.
Shares are down another 8% today at $3.00 and have traded as low as $2.87, and surprisingly haven’t put in new 52-week lows. Its 52-week trading range is $.76 to $11.70. This is one of those instances where if you had the news ahead of time you might be expecting new lows.
If we covered this in our "10 Stocks Under $10" Letter, it probably wouldn’t be with much enthusiasm. In fact, well you get the idea.
Jon C. Ogg
November 28, 2007
Top Gaining Stocks
Top Losing Stocks