Thursday, September 10, 2009

Navistar Disappoints

Navistar International (NAV) reported losses and the stock sold off. The company has reduced guidance for the year. What is amazing that the guidance was accepted for so long? The economy is tough. Navistar products are all major strategic decisions and not impulse buys. Navistar tried to soft shoe this one; just check out how the headlines on the press release were structured.

“Continuing Weak Market, Increased Provision for Income Tax Expense Contributed to 3Q Loss for Navistar.”

Psychologists will tell you the probability of the last word being read is low. The headline confuses more than explains the true circumstances. They want you to throw this one away and forget about it. Just too tricky for most. Trust; well not now.