Quote:
Originally Posted by widgeon13
The analyst do not predict the company performance on a quarterly or annual basis, that is actually derived from company provided information (dividend, sales figures, EBITDA, whatever) and usually reported that way.
...we would meet with certain industry analysts and give them projected figures and report previous performance results. They would then report those figures to the financial community....
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If I understand what you're saying correctly, then when the analysts' really miss BIG on their estimates, then who has really miscalculated? Can a company really be that far off the mark on measuring their own performance, or do they mislead on purpose? I personally don't put much "stock" (pun intended) in what the analysts project, but since many stocks rise and fall based upon whether they meet/beat the street estimates, I was just curious.
ps: I don't doubt that Thom is correct, but I'm just curious as to which "institution" is doing the manipulation, the company in question or the brokerage house (or both
)?