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Technology Stocks : TAVA Research - No Discussion

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To: C.K. Houston who wrote (438)2/13/1998 2:16:00 PM
From: C.K. Houston  Read Replies (1) of 810
 
How to make sense of a corporate earnings conference call
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MONEY.COM by Michael Brush Jan. 14, 1998 - EXCERPTS

When it comes to the earnings season, the numbers are only part of the story. Just as important is what management says about the quarter -- not to mention the trends ahead -- during the traditional conference call held to release the earnings results.
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Mastering the conference call can take years of experience. But to help get you started, we spoke to some money managers and analysts who regularly use them. We can't teach you financial analysis or how to interpret the calls in just one article, but we can give you some tips on how to listen to a conference call.

Figuring out what it all means can come down to a matter of tone. You might not think so in the hard, cold world of investment management, but it can pay to focus on the emotional element.

"Not only are investors looking for information about things like earnings reports, but for the tone of the call," says Joe Noel, a telecommunications analyst with Hambrecht & Quist. "Stocks will trade up or down on the tone of the call." Listen for signs that management is being especially upbeat. Likewise, a negative tone can tell far more than the cold numbers that are being released. It can pay to go with your instincts.

You can learn as much from the questions asked during the call as from the company presentation that kicks it off.

"The information brought up by other investors is useful," says Eric Efron, a co-portfolio of the USAA Aggressive Growth Fund. "It helps you get a feel for the sentiment towards a stock and how the thoughts of others are changing. The market is psychological as much as it is fundamental.

Worth reading WHOLE article.
pathfinder.com

TAVA Conference Call 10AM EST Tues Feb 17: 212/896-6070

On internet: vcall.com

24 hrs Re-Play 800-633-8284

Earnings released BEFORE market opens.
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