Tuesday, December 04, 2007
Most Interesting Analyst Comment Today
Cutting through the normal cacophony of the pom-pom waving crowd of Wall Street’s Finest—including a certain analyst’s reduction of his E-Trade price target from $19 a share to $8 (last trade $4.11), which I am not making up—comes the clarion sound of an actual interesting, forward-looking statement by Susan Chen of Merrill Lynch, following last night’s earnings call with BearingPoint, the troubled consultant to other companies:
“Revenue from Financial services declined 31.6% y/y. Besides the winding down of a large contract and continued senior staff defections, BE reported some early terminations by large banking clients in response to the recent asset/CDO write-downs in the industry. This is alarming as BE is the only company so far that has reported some meltdown/IT budget cuts in this vertical. We may see some weakness during 4Q earnings by other firms in the next few weeks.” [Emphasis added]
Yes, we may indeed.
I Am Not Making This Up
© 2007 NotMakingThisUp, LLC
The content contained in this blog represents the opinions of Mr. Matthews. Mr. Matthews also acts as an advisor and clients advised by Mr. Matthews may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Matthews' recommendations. This commentary in no way constitutes investment advice, nor is it a solicitation of business in any way. It is intended solely for the entertainment of the reader, and the author.
Posted by Jeff Matthews at 9:12 AM