Friday, October 19, 2012

Pricing Stock on Expectations, Not Current Earnings


Leave it to Wall Street pundits to move the goalposts and the sidelines when times get iffy and there are doubts about current earnings.

There’s talk, always, when price earnings fugures are not in line with what they ought to be, when the experts take on another tack. They then bank on expected earnings sometime in the distant future. 

When reported numbers can be suspect, how can you rely on future predictions in a changing world economy?  Yet the action crops up periodically. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)


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