BLM and the rest…

Riz

Experienced member
1,266 5
I think what BLM announced yesterday was not a disaster but the inevitable for many tech stocks exposed to the economic environment in the US…in other words the economic slow down effecting earning outlooks and growth potential…

Those tech companies that are non-profitable at the moment and expected to become profitable in future are realizing that the profit making might be pushed further…say instead of in a year time in two years time…

This brings the issue of those that have not issued their profit warning yet…they are certainly more risky than those that already done it…

We now know the effect of the US slow down on BLM, PON, etc. Watch out for the others, we can’t possibly know if their profit warning has already been priced in unless they announce it…and when they do we might see more cases like BLM and PON..

So it’s best to stay away from IMPULSE BUYING that might occur as there are signals of a turn round in the market…

1) The signals are not for a definite turn round…we need more time for that to happen

2) Even when the market really turns round, we may see some delayed profit warnings due to reasons explained above

Riz
 

Similar threads


AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock