A sharp 17.5% drop in the company's stock price Monday took officials at EECO Inc. in Santa Ana by surprise, the company said Tuesday.
The Santa Ana-based electronics manufacturer's stock plunged $1.75 to close Monday at $8.25 a share. EECO officials said that they know of no business-related reason for the decline. The stock, which trades on the American Stock Exchange, had sold for about $17 a share before the Oct. 19 stock market collapse.
In trading Tuesday, EECO stock rebounded 75 cents to close at $9.
"The market price decline is totally at variance with EECO's business outlook for the remainder of 1987," EECO President Robert C. Milo said in a statement Tuesday. "Current forecasts for fourth-quarter revenue and profitability remain optimistic over earlier quarters of 1987."
One explanation for the stock's decline could be that Prudential Bache Securities, a New York investment firm, put a 10,000-share block of EECO stock up for sale shortly before the close of trading Monday, according to S.A. Schlosser, EECO's chief financial officer.