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Technology Stocks : International FiberCom, Inc. (NASDAQ- IFCI)
IFCI 0.06000.0%Jun 7 5:00 PM EST

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To: david james who wrote (2992)9/23/1999 2:54:00 AM
From: Elroy  Read Replies (1) of 3541
 
The mistake that Kealy made, I believe, is in setting up high earnings expectations.

This is exactly their problem. If the guy had any Wall Street sense, he would have told the analysts that follow the company that EPS would be about 40 cents in 1999, and then come in at about 44 cents, in other words, EXCEED EXPECTATIONS! Instead, he continually sets expectations high, then changes his minds when he realizes the company is not going to earn what he claims. If you ask me, he's crazy for even saying the company should earn 70 cents in 2000. Why not say 55 cents, and then do better than expected each quarter? As it is, no one believes what he says about earnings anymore.

Revenue growth is great, but the stock goes nowhere until we see real earnings improvement, not claim about improvements in the future.
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