Stocks quoted in this article:
Things aren't shaping up well for Legato Systems (LGTO - 53-5/8
) this morning, as the stock is showing a 44-percent loss in pre-session activity. After closing above the 53 mark last night, the shares are now asked at 28-3/4. After the closing bell yesterday, the networking company reported fourth-quarter earnings of 11 cents per share, falling far short of analysts' expectations of 19 cents. Before today, analysts were notably bullish on the shares, according to the latest data from Zacks Online
. In fact, 17 of the 18 brokerage houses covering the shares had rated the stock a "buy." Already this morning, one brokerage firm has downgraded LGTO to a "hold." If more downgrades follow, it could prove to be a truly disastrous day for the shares.