>From Fleckenstein's daily column:
http://www.siliconinvestor.com/insight/contrarian/
[...] On Monday night's rap, I pointed out that on Tuesday Micron would announce its earnings miss. Now how come I knew they were going to miss earnings and every dead fish [his term for submoron stock analysts with 6-figure salaries] that follows it didn't? Plus, they all initially had much higher earnings estimates, but the company had gone around and guided them lower. So even after being led by the hand, these geniuses still couldn't get the numbers right.
So what do they do after they find out they're wrong and are forced to cut numbers? They raise price targets. They even go so far as to say that, in essence, they knew they were wrong with their estimates, but it didn't matter.
Quoting this morning from the dead fish duo at Morgan Stanley, they said, "As expected[!!!!!], MU [Micron] reported fiscal second-quarter EPS of $.58, lower than our estimate of $.70 and the consensus estimate of $.78." If you read that again, it begs the question: Well, if they knew their number was wrong, why didn't they just change it? [...]
Enrique
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