Sunday, May 2, 2010

Wall Street’s Earnings Estimates

As you may know by now, I am not a fan of securities trading. My research on over 1600 securities strategies have given me enough insights that have personally weaned myself from strategies involved with trading. I leave them to insider, very heavy volume pros on Wall Street who can profit from that inside position.

Wall Street gets excited about how companies and analysts estimate earnings and whether analysts, particularly, manage to hit their estimates closely, or not at all. In fact, there are strategies based on the percentages of closeness-to-estimates that analysts get.

The sharp pencil folks on the Street can come up with anything that will attract believers. The machinations add up to little in the real world.

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