chiggins

Syntax-Brillian: Some Shareholders Are Smarter Than Others

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14-Jun-07
08:56 BRLC Syntax-Brillian: Would be aggressive buyers on weakness- CIBC (4.56 )

CIBC reits their Outperform and $15 tgt following the significant share pressure in the past few days. The firm says the selloff is likely due to published reports that Olevia will soon be out of Circuit City (CC), while Sony's deal with Wal-Mart will impair Olevia demand. The firm believes both assertions are "way, way off". Firm notes the reports that Olevia was abandoning Circuit City in favor of Best Buy (BBY), although this would be great if true (BBY is larger, more successful), they say their checks at CC & BRLC totally contradict these assertions. Firm believes Monday's pressure was due to another competitor's suggestion that Sony's intent to sell entry-level LCD-TVs at Wal-Mart will likely damage Olevia's competitive position. They believe Sony's cost/markup structure will not compete with Olevia, nor is Wal-Mart a BRLC customer.