Prepare Early for Earnings
Here we are, having just finished opening the gifts and digested our turkey and egg nog, and harsh reality must intrude. I am not referring to the fiscal cliff, which of course will capture the headlines for the rest of the week. While the decoy debate continues in Washington (and Hawaii), real companies are operating in the real economy, attempting to earn real profits, which will support real stock prices.
Along with profits come profit warnings, and in a week we will be entering "pre-announcement" season, that sad time of the quarter when management teams confess that earnings are not going to meet the Street's expectations. We might get a few before Dec. 31, since the Securities and Exchange Commission (SEC) requires that any material change in outlook be disclosed when known. However, most management teams are aware of the implication of blowing up their stock price right before quarterly and annual fund performance is calculated...and right before annual bonuses are calculated....309 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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