Global-Tech Appliances soars on growth projections
Global-Tech Appliances Inc. (NYSE: GAI) shares are soaring despite an announcement after the opening that it expects a “modest” first-quarter loss. The floor care and kitchen appliances maker said it expects a 15% increase in first-quarter revenue, compared with the prior year’s first quarter. The Hong Kong-based firm also said it projects improved results during the second quarter going forward.
“We believe that our bases in China and Hong Kong provide us with a unique advantage of being a conduit for overseas technology to penetrate the China market, which should allow us to exploit other business opportunities,” CEO John Sham said in a statement. “Beginning with the second quarter of fiscal 2008, we expect to report improved financial results as we anticipate our CCM business to continue its rapid growth.”
In morning trading, GAI shares are up 33.25%, or $1.36, at $5.45. Over the last 52 weeks, shares have ranged from $2.38 to $5.85.
