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Technology Stocks : PSFT - 1997 Outlook [closed thread] -- Ignore unavailable to you. Want to Upgrade?

To: McNabb Brothers who wrote (564)	12/2/1997 9:48:00 PM
From: Chuzzlewit	Respond to of 940

Hank, I work for private companies -- not brokers or financial houses. Nevertheless, I'd like to comment on your second question: can you explain to me how 34 analyst that were following COMS could miss as they just have? The answer is really easy. These analysts are not financial analysts. They spend much of their time forecasting the unknowable -- sales and earnings. By contrast, a financial analyst spends his time trying to figure out the dynamics of a company and pinpointing areas of strength and weakness. He frequently provides the analysis needed for operational decisions such as the cost of capital or lease vs. buy, or build vs. buy. Malkiel believes that many market analysts are inept. Who, for example, forsaw the glut that hit the disk-drive makers? You also say I'm trying to tell you that stocks tend to react 3 to 6 months in advance of what is really happening within a company! I say that this is nonsense. Look at the prices of PSFT over the past year, and compare those prices to the performance of the business. If you can find a correlation with future events you are a better man than me. Earnings remained on a fast track from the first quarter on, yet the stock price declined until April. Stock prices reflect the perception of what may happen, not the reality of what will happen. Regards, Paul

To: McNabb Brothers who wrote (564)	12/2/1997 10:32:00 PM
From: Webbster	Read Replies (2) \| Respond to of 940

Are you new to PSFT or just this thread? Those of us who have followed PSFT over the last 3 years have seen this kind of stuff before. It has always been unfounded speculation, or improper analysis. Once or twice just FUD from PSFT detractors. One of these days someone may be right, but the McNabb Bros. seem a little full of it for now. I guess we'll have to wait until you 'get your position made'. Looks like we'll have some fun bantering on here until then!