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James,
I think the bigger question is what's a whisper number? I had spent some
time with a researcher for a major brokerage house. We went to visit a
company they brought public. We spoke with the CFO. In the conversation
the two had, they discussed earnings for the quarter and what the
researches was going to write in his report. The researcher and the CFO
agreed on a number that the analysts would report. The analysts reminded
the CFO that if he shows that earnings growth was moving too fast and
for some reason they missed a quarter then the NASDAQ would punish them.
(Drop in stock price.) So the analyst was helping the CFO through the
process. When the analyst and I walked out of the meeting he told me
that the company had actually made about $1/share but they were going to
only report 50 cents/share. Not that they were being dishonest but this
gave the CFO certain latitude on how the company would take write offs
and depreciation. The point that I am trying to make is that the whisper
number is not just a number but is a combination of things. Growth trend
in earnings as well as how the CFO (company- companies management) does
their accounting (allocates their recourses) and the analysts' personal
relationship with the company.
Now this is my observation of a whisper number. Some one else may have a
different view.
Harley
James Charles wrote:
> Hi Guys,
>
> Can you recommend a book you found useful on how to trade on
> anticipated
> news? By that I mean, how to better evaluate changes in whisper
> numbers, analyst sentiment, etc.
>
> Although technicals are the backbone of our trading, it's profitable
> to
> augment with other skills.
>
> Best wishes,
>
> James
>
>
> -------------------------------------------------------------------------------------------------------------
>
> James Charles <money4u@xxxxxxxxx>
> manager
> J&L Business Services
>
> James Charles
> manager <money4u@xxxxxxxxx>
> J&L Business Services
> 5 Dorset Road Work: (609)489-0183
> Cherry Hill Fax: call first
> NJ Netscape Conference Address
> 08003 Netscape Conference DLS Server
> USA
> Additional Information:
> Last Name Charles
> First Name James
> Version 2.1
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