Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: kormac who wrote (24422)	6/19/1998 4:13:00 AM
From: neko	Read Replies (1) \| Respond to of 36349

Some number crunching perspectives: 1) As of June 1, 115 companies of the S&P 500 preannounced earning directions (23%) 2) 68 companies of those reporting said they will not meet expectations. (59% of reporting) 3) If all non-preannouncing companies in the 500 MEET then only 14% will not meet expectations. 4) If 50% of all non-preannouncing companies DO NOT MEET then 52% of all S&P500 companies will not meet expectations. This is a somewhat absurd assumption at this point in time with so little of quarter remaining to warn investors. 5) Less than 20% of the S&P 500 (100 companies) have exposure greater than 10% of net revenues from Asia. 6) Asia business has slowed down, Wall Street uses the assumption that business has stopped. Just some facts to add clarity to numbers. prrr, neko

To: kormac who wrote (24422)	6/19/1998 10:56:00 AM
From: Berney	Read Replies (1) \| Respond to of 36349

Seppo, the article actually states: "Of the 118 companies that have already given early earnings guidance, 59 percent have offered bad news." It is my understanding that companies only have an obligation to provide guidance when they come to understand that the earnings will not be "on target". So, according to the article, in the universe of public companies (at the date of the article), 70 had warned. This is a far cry from 70% of the S&P. I was serious. If 70% of the S&P missed their earnings estimates, we would all need to get the food stamps application. I'm not sure what roast parrot tastes like. Best to you, Berney