Dennis, your tone has turned from humble to arrogant and bragdoccio, are you sure thats you and robert rose hasn't ripped off your handle -ggg-
She got booted, and now it appears she has thrown in the towel -g-
FOCUS-Warburg's bearish Dudack raises S&P500 earnings
NEW YORK, Nov 24 (Reuters) - Warburg Dillon Read on Wednesday said stock strategist Gail Dudack expects higher
earnings from Corporate America after the investment firm hired an economist with a more bullish view of the U.S.
economy.
Dudack, one of Wall Street's remaining high-profile bears and the firm's chief investment strategist, said she expects
operating earnings from the 500 companies in the S&P 500 Index of $50 a share in 1999, up from $49 a share.
For 2000, her estimate is $54.50, up from $51.50. She raised a preliminary forecast for 2001 operating earnings to $58.30,
from $55.25.
Dudack's name has been on the tongues of some of Wall Street's most prominent analysts recently after controversy
erupted after she lost her position as an analyst on the popular television show "Wall Street Week with Louis Rukeyser".
In last week's issue of Barron's, influential columnist Alan Abelson lambasted the show's treatment of Dudack, saying
she was publicly chastised "for the mortal sin of bearishness."
In Wednesday's research report, Dudack said her changes came "accordingly" because the firm's new economist, Joseph
Carson, presented new targets for U.S. Gross Domestic Product which required changes to her numbers.
Carson's debut report, issued last week, forecast GDP would rise 3.9 percent in 2000 and 3.5 percent in 2001. The firm's
previous estimates had been 2.2 percent and 2.4 percent, respectively.
On Wednesday, the government said third-quarter GDP rose 5.5 percent, easily beating Wall Street estimates of 5
percent, the consensus view of economists polled by Reuters.
Carson said his view has not changed since he left from the chief economist spot at Deutsche Bank. Export growth will
boost GDP going forward, taking a leading role from current trends including the high-flying housing market and strong
consumer spending, he said.
Dudack's new estimates would mean earnings gains year-on-year of 13 percent, 9 percent, and 7 percent, for 1999, 2000,
and 2001. She pointed out they are below Wall Street's estimates of 15 percent in 1999 and 16 percent in 2000.
She pointed out that the market is overvalued by one measure used by Federal Reserve Chairman Alan Greenspan.
Based on Wall Street's forecasts for the next 12 months, the market is at now trading at 24.5 time future earnings. That
would put the Greenspan valuation model at 1.49, beating its record of 1.45 recorded in June 1999, she said.. |
