Hutchinson Technology Drives Into The Ground

Even in an environment as nasty as the one we’re in right now, rarely do you see a stock suffer the kind of sustained carnage now being inflicted on shares of Hutchinson Technology (HTCH) . Best know as a producer of suspension arm assemblies for the hard-disk drive business, the company has obvious exposure to slowing demand for personal computers. Earlier this month, the company provided a grim outlook for the fiscal first quarter ending December , projecting sequential declines in both volumes and pricing. September quarter revenues were $164.3 million; December quarter revenues are likely to be lower. (The consensus is now $152.6 million; before the warning the Street had expected $178.3 million.) The stock, which has been battered all month, today accelerated to the downside. Why things got worse today isn’t clear. In a report dated Sunday, analyst Joseph Sabu, at Philadelphia-based BOE Research Services , cut his rating on the stock to Sell; the report mostly seems to be a ... (link)