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Has anyone else found a different logical reason for the drop?

It's just Mr. Market being his usual mannic/depressive self.

Everyone knew in advance that international sales would drop by a bunch, and also knew why. The company was very good when it came to disclosing this, and did so a while ago. So the drop you are talking about shouldn't have come as much of a surprise to anyone.

Frankly, I didn't see anything in the release I didn't expect or that management hadn't told us was coming a while ago - so the only explanation I can come up with is simply Mr. Market doing his usual antics, and presenting those who might be interested with what could be a good buying opportunity. I saw no fundamental weakness that would explain that kind of a drop (at least in my view).

Remember, the same thing happened with HOFT's last release. They missed some of the analyst expectations by a hair, and I mean really just a hair - and got clobbered for it. What I think is going on is a lot of 'buzz' because these are HGs, and people are expecting spectacular releases. Instead, when they get 'everything is pretty much going according to plan, no surprises one way or the other', they get disappointed and bail out. Judging the sentiment of the market is way beyond my field of expertise so I could certainly be way off base, but if I had to make a guess, this is what I would think is most likely happening.

HOFT's shares have already recovered to their pre-announcement levels, and if I were a betting man I'd bet that this 9% drop will wholly or substantially reversed in relatively short order.

Regards,

Eldrehad

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