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IBDvalueinvestin (98.36)

How is X going to lose -3.46/shr, something gotta be wrong with those estimates



July 09, 2009 – Comments (4) | RELATED TICKERS: X

Watch X beat loss estimates just like AA beat them. Analysts are being too bearish. They got X down to lose over -10/shr this year LOL.

Current Estimate -3.46

This stock was over $100/shr guys

4 Comments – Post Your Own

#1) On July 09, 2009 at 10:29 AM, Rehydrogenated (33.31) wrote:

I agree, steel companies have always had a very cyclical business cycle. They are much better and quickly reducing capacity and cutting costs than the analysts seem to think. I know revenue declining at gerdau ameristeel was more of a relief to them than anything...

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#2) On July 09, 2009 at 10:59 AM, anticitrade (98.26) wrote:

Right now X is the stock I am watching the closest.  When it looks like things might start climbing again, I will drop some big bucks in this stock..  I am also looking at MTL for the same reasons.

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#3) On July 09, 2009 at 11:11 AM, TMFBabo (100.00) wrote:

I work in the steel industry and that estimate does not surprise me. 

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#4) On July 09, 2009 at 11:25 AM, XMFSinchiruna (26.52) wrote:

I cover the steel industry and that estimate does not surprise me.

Besides, of course analysts have been conservative with expectations for 2 reasons: A.) there truly is a monstrous lack of clarity, but more importantly B.) that's how they co-operate with and enable the MOPE (Management of Perception Economy).

If my suspicions are correct, you'll see a ton of companies beating expectations despite horrific numbers. I hope Fools will be keeping track and adjusting the credibility they ascribe to the various 'miscalculating' analysts accordingly. Since market participants are decidedly more optimistic at present than the economic reality would otherwise yield, the 'beating expectations' game becomes a critical tool for maintaining market momentum beyond the already gross distortions from reality.

Stay tuned ... it's bound to be a fascinating earnings season filled with spurious spin.


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