Heinz Blasnik- Views You Can Use Message Board

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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: EL KABONG!!! who wrote (1181)	5/13/2003 8:48:28 AM
From: zonder	Read Replies (2) of 4907

analysts were a bullish lot, and tended to overestimate earnings to the tune of 10% per fiscal year If deviation from actual results was on average only 10%, that is brilliant. I would hesitate to call that "overestimation". The bubble years changed those averages however, as analysts consistently underestimated revenues and earnings in what was (in my opinion) a deliberate attempt to set easy revenues/earnings targets for companies, so as to hopefully induce higher stock prices in the markets I don't understand how you think lower estimates "induce higher stock prices". The industry (world-wide) was estimated to be something like $750B (wild guess, as I can't recall the real number) for the entire year. Yet, if one went back and totaled up the analysts' estimates for the individual companies that were covered, the revenues easily exceeded the estimated total for the entire world And there was one online reservation/tour company that at one time was valued above the entire tourism industry of the US :-)

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