CSCO - Reason To Buy ?? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : CSCO - Reason To Buy ??

CSCO 72.67

+1.9%

1:05 PM EDT

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: THOMAS WHARFF who wrote (571)	10/29/1996 11:31:00 PM
From: noronha	of 588

To: Thomas Wharf From: Noronha There was a great little article in Investor's Business Daily on why stocks fall after meeting and often exceeding analyst projections. The scenario works something like this: an analyst comes up with a projection for the quarterly earnings-say 10 cents per share. As the quarter proceeds he may realize the earlier estimate was a bit conservative-maybe instead 12 cents looks doable. However, the analyst(s) don't always change their estimates on paper--they always want companies to at least meet their estimates. If they raised estimates and the company fell short-11 cents-then the institutional clients will go ape shit. As such, due to these pressures they instead alert the clients to the "whisper number" of 12 cents. On earnings day, the company reports 11 cents and gets shot behind the barn because it fell shy of the whisper #. Sometimes the whisper # and # on paper from Frist Call match--but often they don't. My take on CSCO: earnings not good enough--stock sells off several more points-maybe $54 and then it is a good time to step up to the plate and buy. My two cents.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next