Powerwave Shares Take 12.5% Plunge

Powerwave Technologies Inc. shares fell 12.5% Wednesday on profit taking and general weakness in technology stocks.

Better-than-expected earnings released in mid-April and a series of positive ratings from analysts helped propel the Irvine company’s stock to a 52-week high of $222 on Monday, but the stock’s sharp gains over the last two weeks prompted investors to take profits Tuesday and Wednesday, market observers said.

The company’s shares slipped $25.19 to $176.06, adding to Tuesday’s 8% decline. A total of 2.8 million shares changed hands Wednesday in Nasdaq trading, about four times the daily average.

Weakness in the Nasdaq Composite Index contributed to the sell-off, observers said. The Nasdaq, off as much as 5% Wednesday, closed with a 2% decline.

“We scoured the news and there was nothing,” said Ed Snyder, an analyst with Chase H&Q.; “Volatility has been high and it’s run up pretty heavily. We had a seller or two this morning and then when people saw it heading south, they decided to take profits.”

Observers noted that Powerwave’s volatility has been high since the company released its earnings April 13 and its announcement of a 3-for-1 stock split last Wednesday.

Powerwave supplies high performance power amplifiers for use in wireless communications networks.