Its dumbfounding to watch a bunch of last week’s cheerleaders do a 180 degree spin and lament the recent earnings misses. While reports have been coming in about 6% better than expected, there have been enough significant misses to make the rah rah crowd nervous:

“Lots of misses. More than we should be having. Raytheon (RTN) misses — huge! Royal Dutch (RD) misses huge! Leapfrog (LF) shouldn’t matter, but it was a gigantic miss. Blockbuster (BBI) and Brinker (EAT) were huge misses. SBC Communications (SBC) was just awful. AT&T (T) was amazing given how horrible the revenue was.

Merck (MRK) truly did stink — I mean, out loud. KLA-Tencor (KLAC). . . Last week I was thrilled with the earnings picture until IBM (IBM:NYSE – commentary – research). This week it’s just the opposite. It is awful. You can’t ignore it, and you can’t pretend it’s not happening.”

Huge Earnings Misses Hit Wall Street
-James J. Cramer, 10/23/2003 10:54 AM EDT

I think it behooves investors to look closely at their holdings; Are your recent gains stimulus/liquidity induced, or are they driven by organic gains the broader economy? The answer to that question may very well be the answer to your buy, sell or hold concerns.

Category: Finance, Media

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

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