If I recall correctly, Adobe took its recent plunge when they announced in a Boca Raton broom closet that their earnings might come in one to three pennies shy of the 57 cents analysts were then estimating. Now, if they beat the lowered estimates, will they be rewarded by a jump in the stock price, or will analysts say, "Fool me once, shame on you, fool me twice, shame on me"? If they fall short of the lowered estimates, what will happen?
The bottom line is that the company has lost credibility, and I don't know if anything short of a complete, blow-out quarter (or an unexpectedly severe shortfall) will move the stock price in the near term.
Long the stock at 50, and looking for 38, but still holding, for better or worse :(
Chuck Edwards |
