The company usually gives guidence after the announcement of material events (i.e. quarterly #s, acquisitions, etc.). Some companies, like NETA, will continue to give guidence as requested by analysts at varying stages througout the quarter. Good companies will do just as NETA does -- give analysts low guidence, thus beating or meeting the numbers. However, 2 things can happen:
1. The Street begins to see the upside pattern, and comes to expect a company to beat numbers every quarter. If the company should "just" meet #'s, the stock will most likely get punished due to the fact the company performed below investors' expections, even though it may be above or at the concensus #s.
2. A company may infact still miss the numbers, even though low guidence is given by management. This is very bad.
Although I have confidence that NETA will make the quarter, I don't think analysts would lower numbers at this point in the quarter without guidence from the company (which will not be forthcoming). Therefore, we have speculation and rumors surrounding the stock. From what I hear, the analyst at Robertson is still positive on the quarter, and he seems to usually have the most accurate information.
-r. |
