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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: shamsaee who wrote (16258)	1/25/2000 2:02:00 AM
From: StockHawk	Respond to of 54805

>>You may be correct regarding the whisper number,however IMHO should qcom come in above estimates, it only reconfirms its status as one of the great growth companies of this era going forward.<< Hi Shahram, Just to clarify, I was not saying that QCOM is not an excellent company. Nor was I suggesting that they would not beat their number - I think they will. I was just pointing out that too much optimism (as evidence by a high whisper number) is a cautionary flag. It raises the bar for the stock, and increases the likeliness of a sell off after earnings (for "buy the rumor, sell the news" types). There is a pay site called Options Investor that does a calculation on optimism/pessimism before earnings as a predictive tool. Their theory is that stocks with too much optimism built in, sell off after earnings, almost regardless of how good the earnings are. On the other hand stocks with built up pessimism often rise after earnings are reported. Note LU - they missed their already lowered expectations. But the stock did not fall any more because they had already fallen, while a stock like BRCM can beat earnings - and take a beating. But its all short term stuff anyway. StockHawk