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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Ross who wrote (73607)	1/14/2000 1:25:00 PM
From: Mike M2	Respond to of 132070

Ross, management of earning expectations is part of the game. The consensus estimates are deliberately ( IMO) set low so that the company can " beat" the estimate. Falling stock prices are bad for the stock business. a classic example was in 2Q96 IBM beat the estimate by coming in at $2.51 / sh the est. was for $2.50 they beat by a penny yippee - that was good for a 13 point rally as I recall and maria Bartiromo was ecstatic. Nary a word was said about the fact that the consensus for the 2nd quarter was $3.25 at the beginning of the quarter and the estimates were quietly lowered. This is how the game is played . We all know that companies that really miss are taken out and shot ( the stock). The analysts and management work together to ensure that most surprises are positive because its good for business. I expected Intel's results to be well received because the company is too important to the new era theme. Hear no evil see no evil speak no evil. Mike