Wall Street got off to a rather cheerful start but the determination of leading indicators has since slackened, the Nasdaq Composite index losing 1.22%. The Dow Jones is still in positive ground as it manages to edge up 0.05%.
The Holiday Season is usually marked by dull sessions, but today traders opine that those who decided to try their luck on Wall Street today will look for Buy opportunities. Meanwhile, the window dressing effort is still in force as portfolio managers buy those shares that have posted the highest yields during the year.
Investors will not be quick to forget 2000, which is probably the worst year in Nasdaq's record. The year got off to a good start, the Nasdaq posting a peak 5,048-point level in March, but has since lost 50% to 2,550 points. This plunge comes to a negative yield of 37% as of the beginning of the year.
Israeli shares have opened on a mixed note. The companies that yesterday released profit warnings for the fourth quarter of 2000 are naturally drawing much attention.
(Nasdaq:RDCM) both announced that they will not meet revenues and earnings forecasts for the fourth quarter of 2000 because of the slowdown in the technology sector in the United Stated and the cuts in expenses that leading telecoms companies are facing.
Optibase is plunging 18% to $5.9 after losing 40% over the last month. The current price of stock reflects a company value of $68 million, 15% short of the cash company had left in its coffers as at the end of the third quarter of 2000.
Optibase develops video and audio products for broadband networks, announced it expects to post sales totaling $6.8 million to $7.3 million in the fourth quarter of 2000, against sales totaling $8.3 million in the previous quarter, and 26% short
Optibase expects that its net profit will break-even in the fourth quarter of 2000, excluding one-time expenses, against the forecasts of 15 cents EPS and 19 cents EPS in the third quarter of 2000.
The company is concerned about 2001, and admits that it is unable to grow via its existing line of products. This will force it to concentrate on development and expand its new MediaGateway product, the MGW2000. The research and development expenses of the new product are expected to significantly squeeze 2001 EPS to a range of 5 cents to 25 cents, against the forecasts of 70 cents, and against 50 cents EPS in 2000. The company expects that the new products will accelerate growth by 50% to 70%.
Radcom, which develops tools for quality control of voice and data communications networks, is off 4.6% to $2.6 after losing 90% of its peak. Yesterday the company announced it will end the fourth quarter of 2000 with revenues of $7.6 million to $8.2 million, against $8.1 million in the same period last year, and sales totaling $9 million in the third quarter of 2000. The company expects to post a loss of 4 cents to 7 cents per share in the fourth quarter of 2000, after posting EPS of 5 cents in the previous quarter. Meanwhile the company will be required to meet a one-time expense in the fourth quarter in respect of the reorganization of its product line, which will result in a bigger loss of 16 cents to 20 cents per share. It should be noted that today the company is not covered by any leading investment house.
(Nasdaq:BVRS) is once again adding ground, up another 29%, after announcing at the beginning of the week a $20 million aircraft simulator deal with a foreign air force. The stock has added more than 250% as of the beginning of the week. Tioga Technologies (Nasdaq:TIGA) is rising 15%.