Someone on Rande's thread brought this point up the other day about guidance now in light of the fair disclosure rule, it could possibly be changing the way companies are projecting forward guidance.
To: Rande Is who wrote (38960)
From: maverick61 Friday, Oct 20, 2000 9:58 AM ET
Reply # of 39723
Rande, this warning about future quarters being the norm - I agree with many of the points you made. I also think their is one other factor at work - and that is as follows:
remember the new fair disclosure rule. I think the companies are not doing anything differently than they have in the past - EXCEPT - now they are "warning" publically, in earnings releases, whereas in the past, they gave favored ANALysts inside info to "guide" estimates lower. Because this is the first earnings season where this is the case, the public has had a chance to see these 'warnings" and have reacted accordingly - rather than just some ANALysts getting it, and doing with it what they will.
I really don't see it as warnings - rather than a change in future guidance - but now that it has become public, instead of being the domain of the privleged few, it takes on a different tone, especially when the newsmeisters pick it up and report it in their own manner |
