Jack, the general economic news is certainly affecting it (although IMHO it shouldn’t – the company is tied mostly to China’s economy, not the American economy), but if that were all, it would decline more or less inline with the rest, so I don’t think that’s all there is.
MT, thanks for the charts; I have to learn how to do that. I don’t think it is overexuberance, since the company has a trailing P/E of 18 (forward of 14, assuming it meets estimates), compared to “notanumber” (negative earnings, so no P/E at all) for most of the telecoms. Growth is good too. The stock is now below where it was in June 2003, when I bought, and back then their earnings and prospects weren’t nearly as good as they are now.
UTSI was HEAVILY shorted when it was in the teens and low twenties, and there are some major players who – even after this week’s drop – are losing millions of dollars. Shorts will do just about anything to drive down a stock when they get in that position. A few months ago, a rumor got started that China Netcom, UTSI’s major customer, was pulling out of deals with them. Totally false, but it knocked the stock down by several dollars for a couple of weeks. So mostly, I’m wondering if the shorts went out and started another rumor campaign to drive it down again – or if there really is some problem this time.