Finisair Plummets 35% After Company Stuns With Weak Outlook, Chinese Business Slowdown Blamed

Tyler Durden's picture

Tech darling FNSR is plummeting after hours, down by $14, or 35%, to $26 after the company released in line Q3 numbers, but an outlook that has left the investor base, not to mention its sellside lemming brigade, stunned. While the current sellside Q4 consensus is of 48 cents a share on revenue of $257.9 million, the company announced that "revenues for the fourth quarter to be in the range of

$235 to $250 million" and "earnings per diluted share is expected to

be in the range of approximately $0.31 to $0.35." The result: a stock that is down 33% after hours. Perhaps it is time form Miller Tabak's Alex Henderson, who has been ranked #1 11 times in the Institutional Investor "All Star" poll, to reduce his $60/Buy Price Target. Yet what is worst is that perpetual tech dynamo, China, is now growing dim: from the mea culpa: "the Company will be

impacted by...a slowdown in business in China

overall." Is this the beginning of the end for the tech bubble?

What is more troublesome is the reason cited for the major business slowdown:

During the fourth quarter ending April 30, 2011, the Company will be

impacted by the full three months of the  annual price negotiations with

telecom customers that typically take effect on January 1, the 10-day long

shutdown at certain customers for Chinese New Year in February, the

adjustment of inventory levels at some telecom customers, particularly for

products which had previously been on allocation and long lead times,

including WSS and ROADM line cards, and a slowdown in business in China

overall. Primarily as a result of these factors, the Company indicated that

it currently expects revenues for the fourth quarter to be in the range of

$235 to $250 million.

Yep. China is slowing down ladies and gents. And techs are about to get clobbered.

What is most troublesome, or hilarious, depending on how one looks at it, is the array of sellside lemmings none of whom managed to anticipate this. Behold the wall of shame:

Who wants to bet that Maverick is one less tech analyst as of this writing?


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John Law Lives's picture

Maybe The Ben Bernanke will direct HAL 9000 to pump FNSR shares in AH.

The puppetmaster holds the strings as the crowd looks on in amazement.

asteroids's picture

Were are the circuit breakers that were supposed to stop at 10%? Oh yeah, that's for retail? One day you will wake up and be totally fucked. And it'll happen at 2AM and it'll take 10mins.

John Law Lives's picture

John Law (i.e. me) does not own stocks.  I am not too worried about a flash crash.

cougar_w's picture

Someone is buying a little. No ramp job tho. Heh. I'm tempted.

whatsinaname's picture

Bob Doll's blackrock on da list ?

meanwhile dynegy files ch 11 bk.. who's buying that ?

Rusty Shorts's picture

They took er tech

tao400's picture

We can always count on Black rock being in there long somewhere

MAVERICK CAPITAL LTD. 4,290,906 5.56 127,396,999 Dec 31, 2010 Invesco Ltd. 4,057,074 5.26 120,454,527 Dec 31, 2010 WELLINGTON MANAGEMENT COMPANY, LLP 3,398,420 4.40 100,899,089 Dec 31, 2010 COLUMBIA WANGER ASSET MANAGEMENT, L.P. 3,333,700 4.32 98,977,553 Dec 31, 2010 VANGUARD GROUP, INC. (THE) 3,155,871 4.09 93,697,809 Dec 31, 2010 WELLS FARGO & COMPANY 2,994,360 3.88 88,902,548 Dec 31, 2010 ALGER (FRED) MANAGEMENT INC 2,684,619 3.48 50,443,991 Sep 30, 2010 NEXT CENTURY GROWTH INVESTORS LLC 2,399,651 3.11 71,245,638 Dec 31, 2010 Cavalry Management Group, LLC 2,001,753 2.59 59,432,046 Dec 31, 2010 BlackRock Fund Advisors 1,931,495 2.50 57,346,086 Dec 31, 2010


plocequ1's picture

I just went on yahoo message board for FNSR. Very painful to watch. People getting hurt

Yikes's picture

Bad after hours for tech.  TI just trimmed 1st Qtr estimates.  Is tomorrow a POMO day? 

cougar_w's picture

I'm in tech (networking ... gulp) and my stuff is holding up. But this is dicey ...

HelluvaEngineer's picture

Kids, remember to keep your trailing stops tight - like 37% or so.

redpill's picture

Headline on drudge: Welfare State: Handouts Make Up One-Third of U.S. Wages


reading's picture

Well, I guess when you go from 15 to 46 in 6 months of POMO induced hyper momentum chasing a drop of 33% in a few short minutes is to be expected.  Wow, sucks for those who thought they could trail it with a nice stop.



I am a Man I am Forty's picture

Just bought some at $24.87.

cougar_w's picture

hee hee, you beat me to it by a buck. Tmrw will tell ....

g3h's picture

Wait for Alex Henderson to come out to say, "This is even a better buy now."

LongSoupLine's picture

Note the increased volume of selling in the afternoon prior to earnings.  Almost as if some knew ahead of time....nah...sorry, that was real silly of, "insider trading"...that's illegal, what was I thinking?

grey7beard's picture

>>   Almost as if some knew ahead of time...


That is the reason I stopped trading in stocks many years ago.  The market has been rigged for a long, long time. 

Can2001's picture

Hughhh, i dont wanna be a maverick .....urghhhh

virgilcaine's picture

Nize bear market action..

Misean's picture

Stocks don't move on earnings. BTFD

Spalding_Smailes's picture

Latest Directives From the Ministry of Truth, March 2-7, 2011

The following examples of censorship instructions, issued to the media and/or Internet companies by various central (and sometimes local) government authorities, have been leaked and distributed online. Chinese journalists and bloggers often refer to those instructions as “Directives from the .” CDT has collected the selections we translate here from a variety of sources and has checked them against official Chinese media reports to confirm their implementation.

State Council Information Office: March 5, 2011

From the State Council Information Office: All local websites must meticulously propagandize and report on the National People’s Congress and the Chinese People’s Political Consultative Congress.  Set up special areas, columns, and webpages on the “Two Congresses,” and set up “Two Congress” headlines in prominent positions.  These must stand out and give off an animated and grand propagandistic air.  It is required to provide timely, accurate, and full reporting on the important activities of Party and state leaders at the “Two Congresses.”

All websites are to fully employ the capabilities offered by Internet media, and comprehensively utilize text, images, animation, and other multi-media interactive forms of propaganda to report on the Two Congresses.  This is particularly necessary for the important content and spirit of the opening ceremonies of the Two Congresses, news conferences, and working reports of the government and the standing committee of the National Chinese People’s Political Consultative Congress.

In general, propaganda requires that we circle around and hold high the flag of the Party; focus on building up the interests of the nation; in all things serve the people; and maintain reform and innovation.  Please emphasize positive propagandizing of unity, stability, and enthusiasm.  All reports must fully reflect the democracy of the meetings, and the general scene of unity, fact-seeking, and bold advancement.

Central Propaganda Bureau: March 4, 2011

From the Central Propaganda Bureau: In their reports on the proposals before the Chinese People’s Political Consultative Congress, media are in all cases to use copy circulated from the Xinhua news agency.  Do not hype the “Proposal King”; do not question the function of the Consultative Congress.

Central Propaganda Bureau: March 4, 2011

From the Central Propaganda Bureau: All media are not to report on excessive use of public security in Beijing during the meetings of the National People’s Congress and the Chinese People’s Political Consultative Congress.  Do not hype the story “The People’s Security is Afraid of the People.”

Central Propaganda Bureau: Corruption of Party Committee Secretary in Wushe County, Henan March 4, 2011

From the Central Propaganda Bureau: All media are not to report on the corruption case of the Party Committee Secretary in Wushe County, Henan.

Central Propaganda Bureau: Student Death at Hebei Industrial University March 4, 2011

From the Central Propaganda Bureau: All media are not to report on the death of a Hebei Industrial University (Hebei gongye daxue) at a train station in Daqing.

NOTW777's picture

the chinese are still arresting, beating and persecuting Christians


also recently heard of a case where chinese public bureau police were surveiling the house of a subject on the east coast of US - yes, they are here

Spalding_Smailes's picture

Central Propaganda Bureau: Salary Increases for the PLA March 3, 2011

From the Central Propaganda Bureau: All media are not to hype the salary increase given to the People’s Liberation Army.


Central Propaganda Bureau: Jasmine March 2, 2011

From the Central Propaganda Bureau: Media are not to report on any information related to “Chinese Jasmine."


State Council Information Office: China Banking Regulatory Commission’s Official Network Appears to Have Leaked the Personal Information of 188 Citizens March 2, 2011

From the State Council Information Office:  All websites are requested to immediately search for and delete the story “Citizens’ Personal Information is Precious: China Banking Regulatory Commission Appears to Have Leaked the Personal Information of 188 Citizens.”  All websites and interactive spaces, including online forums, blogs, micro-blogs, instant messaging services, and text messaging services are to thoroughly search for and immediate delete this story and related information.

Citizens’ Personal Information is More Important Than Heaven: China Banking Regulatory Commission Appears to Have Leaked the Personal Information of 188 Citizens.

EscapeKey's picture

Yep, because the BLS only releases absolutely trustworthy information you can take to the bank.

Can2001's picture

fat up gap @2/4 11 and fat candles  dayli evening star  at 2/11 -2/15 2011....yes this times are different

NOTW777's picture

so, curious what does a fund do in this situation? dump AH or wait for a bounce?

Can2001's picture

i think they cant do anything the portfolio its an pub( in my mean

research) ...performance in this monh comes maybe down 025 -1% against competitors.

its interisting to see what comes tomorrow...

NOTW777's picture

well AH does not allow efficient vol.  looks like some support at 24.57ish so i nibbled

earnings were ok - it was guidance.  39% haircut however might be overdone

Can2001's picture

fat up gap @2/4 11 and fat candles  dayli evening star  at 2/11 -2/15 2011....yes this times are different

EscapeKey's picture

"Finisair"? Why, because their stock price flies?

Well, it doesn't anymore. Back to "Finisar" again.

Can2001's picture

"lol" thats ridicoulus  tape = 25;  200ma( e) =24,78; 200ma (s) =22,19....


bennie stand there with a gun, fueled of dollars...

MountainHawk's picture

I'm gambling on some DANG march calls going into tomm, should make for an interesting day...

walküre's picture

yeah, yeah.. price discovery is a bitch.

there is cash waiting to invest but at these levels ... no thanks.

let the top investors eat each other alive over the next 6 months.

may the strongest survive and when they're done, I might come in for the scrabs.


hambone's picture

With friends like THE STREET...who needs enemies?

3 Stocks That Could Get Squeezed Higher

All about Finisair...came out at noon today.  Won't be a happy open for many new stock holders tomorrow.

cougar_w's picture

... unless they bought after-hours. Though even then it could open red ...

Can2001's picture

in normal time it looks like overbought with ptarget@ 2$ , but we live in opinion this thing is is near 1$ toast than 200$ ...time will tell

long-shorty's picture

Giving credit where credit is due... Hamed Khorsand of BWS Financial has been (now presciently) calling for/warning of an imminent inventory correction in the optical networking space, including the inventory build (not sell-through) in China. That's a little different than about every other analyst in the space. Congrats, man. You nailed it.

mynhair's picture

No wonder NFLX didn't tank.  More pressing problems presented.

b_thunder's picture

35% drop in AH trade?  it's like 2001 all over again!  man, does anyone else remembers those days? 

BTW, this p.o.s. was 15 bucks before the QE2 and the all-conquering dash-for-trash (stocks), aka Cramer's "tsunami."  I think there's still plenty of "air" underneth...



reader2010's picture

Is this the prelude to the inevitable Great Housing Crash in China?

Math Man's picture

More likely a prelude to the coming drop in Precious Metals and Commodities demand from China...

matthylland's picture

I think the market is toppy...just read this reply on the Scottrade community message board:


"Im a new member. Got tired of listening to the Dr.s at work talk about how he just made 250k in just 3 months and how he makes more money on his day off then having to come in to work and be a Dr. Its my turn!  but starting really small. still have a lot to learn. :)
Good for you! That's exactly what I'm talking about. There's no reason why me or you or the average American can't make a nice living"



2000 all over again, or at least the start

reader2010's picture

 “As long as the music is playing, you've got to get up and dance