The Five Dumbest Things on Wall Street This Week

5. Mad at the Market

Matria (MATR Quote) is all mixed up.

Shares plunged 18% Thursday after the Marietta, Ga., disease management company slashed 2006 revenue guidance by $26 million.

The setback marks the second time in two months that Matria has offered disappointing guidance. Matria has been the target of short-sellers who point to management turnover at the company and its recently acquired CorSolutions unit.

But CEO Pete Petit says the drop-off in business isn't Matria's fault. And who is to blame? Why, it's those scoundrels in the market.

"The market's reaction to our acquisition of CorSolutions appears to be a general delay in awarding new-employer business to Matria," Petit says in a Thursday morning press release. "As a result, we have lost some revenue momentum that cannot be recovered during 2006, but has slipped into 2007."

It's not clear how the market can withhold new-employer business from anyone. Petit does admit, though, that because of the size of the CorSolutions deal, "consultants and prospective clients are being cautious."

Given Matria's muddle-headed take on its decline, we can't blame them.

Dumb-o-Meter score: 78. "To mitigate this concern going forward, we are helping our prospective clients understand the company's significant capacity to absorb new growth," Petit adds. We're sure that will do the trick.

< Previous

1 2 3 4 5

Next >