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Technology Stocks : Dell Technologies Inc.
DELL 120.60+1.8%Jan 9 9:30 AM EST
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To: Odeon who wrote (17273)9/28/1997 10:59:00 PM
From: Patrick E.McDaniel   of 176387
 
Odeon, welcome aboard. The analysts prime concern is not to hit earnings on the mark.

Their prime concern is to see to it their investors don't get burned. If they call an estimate that is lower than they really feel the stock will perform, they cannot get burned.

If they call a higher estimate, it raises the average. There are now expectations to beat the "whisper number"(an earnings estimate, usually higher that is a what the market is expecting). Raising the average makes it more difficult to beat the whisper as the whisper could be driven higher.

There is no reward for an accurate estimate for the analysts.

Therefore, by raising the estimate they cannot gain in the long term as an upside surprise gets better press and missing earnings or the whisper could be very costly.

Pat
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