Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 47.14

-6.1%

Feb 10 3:59 PM EST

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To: damniseedemons who wrote (3867)	10/8/1996 7:58:00 PM
From: Parsua	of 186894

Companies have an obligation to preannounce if they know that they cannot meet the estimates. Afterall, it is the company that gives general guidlines and helps out analysts with their earnings models. So the preannouncements are for the analysts to adjust their estimates. If the comapny does not preannouce, it will be a disaster and the stock can go down much, much more than if they preannounce. The price of the stock goes down not because they preannounce, but because the company is not growing as fast as before and there is always an decline in the price. It is much better to get it out of the way fast rather than the stock going down for several months.

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