Sorry James. Prude is my own nickname for Prudential (most people call it Pru). They are a brokerage and investment bank, and they have an analyst covering AVID. While AVID has had some powerful upward earnings estimates revisions lately, the Prudential analyst last week downgraded the stock from a buy to a hold, putting a cloud, or at least a question mark over things. I was psyched because all the analysts were increasing their estimates quite a lot. Then along comes Pru. The market did not seem to mind this week, though, since AVID closed near its recent high. But be careful, because once one analyst downgrades, it is a sign that other may soon follow. The odd thing is that it happened in the midst of these powerful upward revisions. That's why I think it is important to understand Pru's reasoning. If anyone has access to their research, please let us know.
BTW, for John Veltheer: The fact that AVID hammered analysts expectations on the 24th, and that Intel has signed on by investing in the company and agreeing to help distribute its product are good signs, too. |
