Thursday, January 17, 2008
La, La, La - Can't hear you!
You know when someone is trying to tell you something and you do anything you can to make sure you can't hear them? Well it would seem the various stock markets have become a little like that in the last few weeks. In the US Apple announced sales of the iPhone are doing great and the stock tumbled. Intel then announced profits up 50%, their stock was pounded. In our sector, Huntsworth and Chime both put out positive trading updates only to see their stocks fall - despite the fact that in both cases they used expressions like: "we are confident about our prospects for the year ahead." So it would seem the best thing to do right now is stay below the radar if at all possible. Positive corporate news, it would seem, is more likely to remind analysts you exist and drive your stock down than do the opposite. It makes no sense of course but it's hard to argue with.