Morgan might decrease profit forecast of Legend

Under new account system, amortization for goodwill must be shown in profit-and-loss table. If Legend adopted new account system, Morgan would decrease Legend 2002 profit forecast at least by 9%, which would spell negative influence on the stock. Stimulated by global declining demand on personal computers and falling price of computer spare parts, Legend will benefit from the improvement of margin profit and purchasing intention ignited by falling price. The results are expected to be shown in Q1 of 2002. Morgan said stock price of Legend was higher than reasonable price of HK$5.15 in the past three months and would be traded only within the range of 15%. 

Related stock : (NIL)