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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: Paxb2u who wrote (22138)1/15/2002 6:17:35 PM
From: Ibexx  Read Replies (1) | Respond to of 99280
 
The market has made sure that the low stock prices numbers are commensurate with the low earnings forecasts.



Thus, if there is positive surprise on the earnings, the stock price moves upward. That's all there is to it.

Ibexx

PS: Low earnings are better than negative earnings. We must put things in the proper context (of the 2001/2002 recession).



To: Paxb2u who wrote (22138)1/15/2002 6:17:59 PM
From: paul_philp  Read Replies (3) | Respond to of 99280
 

Earnings estimates so low they have to beat them


Isn't this exactly what you would expect at the start of a turn around? Earnings are so beat up that even a minor uptick makes it easy to beat expectations. The real missing is forecast growth, IMO. We are in the "things are not getting any worse" phase but not yet the "things are getting better" phase. I don't think this is what Mr. Market bet on.

Paul