senor,
if i might emote for a moment or two about one of my favorite subjects, or maybe i should say least favorite, your friends, the analyst!
i just came across an article i had bookmarked from june 14th of this year, wherein the great brains at solomen smith b(l)arney commenting on the rough times in the tech sector were lamenting that, "now is the time to get more selective and pick companies that can grow earnings in a more difficult operating environment."
they then went on to tout how they had back-tested their quantitative model for earnings momentum, valuation, price momentum and profitability, before deciding that estimate revision trends and profitability momentum, measured by return on assets, are the best incremental predictors.
the article then went on to list 14 stocks that fit the criteria, stating, "all are great technology companies, have strong business models, are standard setters within their segments, enjoy strong earnings prospects going forward and draw the highest rankings among their analysts."
as of this morning, here's what happened.
only 3 of the 14 are up, but significantly. they are BRCD +65%, BRCM +45% and SEG +17%.
the following 11 are down an average of 33%. they are ADI -33%, ALTR -33%, AMD -45%, CSCO -19%, DELL -35%, LU -59%, NSM -59%, NT -31%, PMCS -8%, SBL -17%, &XLNX -23%.
and yet,when any of these guys or the houses they work for fart, it's like mt. vesuvius errupting.
pissed in poway |
