Oops. Itron Stock Pulverized By Error Case Of Mistaken Identity Causes Temporary Nosedive

In a classic case of mistaken identity, a stock analyst’s report on the parent of one Spokane company sent shares of another into a short-lived nosedive Friday.

Itron Inc. was the innocent victim. Itronix, the near twin, the intended target.

Our story begins when traders mistakenly thought an influential technology analyst had panned Itron, which makes instruments for reading utility meters.

The analyst, Joe Arsenio of Hambrecht & Quist, was talking about Telxon Corp., an unrelated company in Akron, Ohio, that makes battery-powered computers.

Itronix is a unit that Telxon purchased from Itron in 1993. Itronix makes heavy duty computers for field use by customers like Sears and GTE.

Arsenio cited Itronix in a report issued two days ago in which he cut his recommendation on Telxon to “buy” from “strong buy.”

“Somehow, somebody confused the two,” said Michael Shea, who covers Itron for Hancock Institutional Equity. “Amazing as it sounds, that’s what happened.”

In the confusion, Itron shares plunged from $54 to $45.75 - off 15 percent - in a 45-minute period starting at 10:45 EDT.

The free fall ripped $100 million from Itron’s market value.

The shares recovered just as quickly, rising to $54.25 by 12:15 p.m. EDT.

“I believe the confusion has been taken care of,” said Mick Quinlan, an Itron spokesman. Trading in the stock totaled 308,500 shares, more than triple the three-month daily average.

Arsenio wasn’t available to comment. Hambrecht & Quist declined to say if he reiterated his opinion on Telxon.

As for Telxon, the company downgraded by Arsenio, its stock closed at $19.75, up 12 cents on the day.

Itron isn’t the only company to be hit with a case of mistaken identity. Transcontinental Realty Investors Inc. shares jumped 15 percent in 1993 after investors confused the company, whose ticker symbol is TCI, with Tele-Communications Inc., which had agreed to be purchased by Bell Atlantic Corp.

, DataTimes