Updated from March 22Solectron remains stuck at the bottom of its 52-week range after turning in a rough quarter Thursday, predicting another and seeing its debt downgraded by Standard & Poor's. The news itself hasn't appreciably lowered the stock, but at roughly 25 times forward pro forma earnings, some say shares of Solectron and its peers are still expensive. "The stocks are pricing in a strong second-half recovery," said Keith Bachman, an analyst at ABN Amro, "which is a concern." The contract manufacturer of electronic products lost $126 million, or 15 cents a share, in the second quarter, about what analysts expected following a warning earlier in the quarter. Revenue fell to $3 billion from $5.4 billion last year. The company's credit rating was downgraded to BB from BB-plus by S&P, which warned it might cut it further. Solectron also gave third-quarter GAAP earnings guidance of 4 cents to 6 cents a share, pro forma guidance to break-even of a loss of 2 cents, and its sales guidance of $2.7 billion to $3.1 billion. All of the estimates were below consensus forecasts. The company cited continued softness in sales and higher interest expenses. The stock fell 5 cents to $8.20 Friday.