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Technology Stocks : Phoenix Technologies (PTEC) -- Ignore unavailable to you. Want to Upgrade?

To: Marc Phelan who wrote (2829)	10/22/1998 11:52:00 PM
From: Fred Fahmy	Read Replies (1) \| Respond to of 3624

Marc, <When a company meets earnings expectations we should replace the management?> It's not a single incident that provoked such a strong opinion. It is a repeated pattern of not be able to deal with the investment community. As sad as it may be, this is a key attribute of all successful stocks. Do you remember when the stock was in the high teens and dropped without explanation to the 12 range. Management told investors they didn't know why the stock dropped so much so suddenly. Then just a few days later, the issued an earnings warning. I definitely haven't forgotten that fiasco. <Why is coming in in the range they gave us "unbeleivable behavior"?> Marc, pay close attention to future warnings were ranges are provided by companies. What you will see (or have seen in the past) is that when earnings are finally announced they are at least in the middle of the range and more typically at the high end of the range. This is how you manage expectations. <I was hoping for .10 myself but First Call had exactly .08, and they were on the money. > So was I....and so was WS....First Call had it right but expectations often deviate significantly from First Call. That's why we get these BS whisper numbers. Do you really think PTEC ran up significantly in the last couple days because investors thought they were going to just meet First Call estimates. Here's the difference. Tomorrow I think the stock will sell off significantly. If they had originally given a range of .06-.08 and then hit .08, I think we could have seen a rally. Same earnings, same First Call estimate...totally different stock results. FF