Layoffs may be good news or bad news depending on the reason...if they laid off 100-150 people that were hired as project workers for a specific project and that project is complete, then it is a good idea to not carry the payroll cost and is evidence of their attention to ongoing costs....on the other hand if they laid off 100-150 people because of lack of work, generally, then it is probably not as good - although not as bad as not having the work and making the payroll...If they laid off US workers to transfer business to more cost effective overseas manufactering, then it is good news...
The point is that without knowing the why, the fact that it occurred doesn't mean much, IMO....
If they didn't lay anyone off and it's a false rumor (as many are), then all the better.....
I still think we are likely to see mid to high 40's between now and at, or immediately, after earnings....unless, as is always the case, the whole overvalued market tanks - the risk of which increases daily as we continue to hit new highs amid some underlying fundamental growth and profitability worries...
Troy |
