Sunday, July 05, 2009

Confession Season Commences

Earnings Season Preview. Regular readers know that I research press releases and other forms of financial communication. In the past finding CEO’s who were effusive about their company’s prospects was not difficult to locate. Everyone saw a golden future. The press releases where dripping with hyperbole. We have just passed the six month mark. Many call this earnings cycle as confession season. Adjustments are to be made to annual guidance. My sense of the corporate mood is that most will report less than encouraging news. CEO’s do not have a reason to stick their necks out and go positive. Remember it’s a herd even for CEO’s. They all watch one another. The trick will be to see who issues overly negative reports in the light of positive results.