Mintu, will be buying some puts within a week. Think the internets are done but the semis have a bit more to run before they get massacred.
From Fleckenstein's Market Rap:
I'd like to share a comment made by Justin Mamis this
morning about the kind of shenanigans that go on in the form of analysts'
expectations and "beating the number," and this little game that gets played.
"Way back when, 'they' discovered that a stock failing to meet estimates got
clobbered, so the analysts and companies conspired to lower estimates, and the
extreme reactions faded away; then, doing a penny better, became viewed as
enormously successful, so the analysts and companies got together again to make
sure estimates were low enough to be exceeded. Analysts no longer had to work
to be different - First Call became the important judge, so it made more sense
to be in line than to try to be different. Now what we hear has changed yet
again - they 'know' that XYZ is going to exceed estimates, but don't bother to
raise their estimates which they admittedly 'know' are inadequate, because what
they get paid to forecast is the exceeding of their estimate, not the meeting
of it. Isn't 'Analysts expect MSFT to exceed estimates' a complex form of an
oxymoron? But some poor slob somewhere is supposed to be surprised. Maybe
that's why they report after the close - to give time for investors in
Uzbekistan to get excited." |
