Wednesday, July 05, 2006

Directed Electronics: Wachovia Comments on FCC Letter

Live In Play (www.briefing.com)
05-Jul-06, 12:13

DEIX Directed Electronics: View FCC letter as near-term speed bump, do not expect any impact to EPS - Wachovia (12.02 -0.71) -Update-

Wachovia notes that DEIX issued an 8-K indicating that it had received a letter from the FCC requesting information regarding two of its satellite radio receivers, the S-50 and ST2 models. DEIX has voluntarily elected to stop shipping these two models only. While this is not good news, firm says the timing for such an issue is fortuitous, as they believe the co had shipped substantially all of its inventory prior to the important Father's Day holiday. Also, the company would typically ship the bulk of its fall merchandise beginning late summer. Firm believes the FCC issue could be resolved in a matter of weeks, and they maintain their ests. Firm believes that DEIX is undervalued.