Mary, RE: The only variable is market sentiment. Market sentiment changes. Market sentiment has to be managed. You don't
have to lie, but you just can't report the numbers without explanation (or spin). You have to manage sentiment.
Intel management just doesn't get it.
And as long as your time horizon is longer than a day or two, it doesn't matter.
If Intel management had acted the way you would like, they would have guided expectations a little lower. Then they could have exceeded those artificial expectations. The only difference would be that the stock wouldn't have performed nearly as well during the quarter, but would have done OK after earnings. As it stands, the stock performed great during the quarter (better than almost all of its peers) but will trade off after earnings. The net result will roughly be the same.
Yes, Intel had a tremendous quarter. And the stock, even after trading down tomorrow (which isn't a guarantee, but probable), the stock's valuation will still be far above its historical norm and close to its all time highs, as befits a company that is doing relatively well. So, contrary to what you state, the market is being pretty rational. |
