
What Moves Markets: The Seven Hundred Million Dollar Man - slam
http://blogs.netapp.com/dave/2009/10/what-moves-markets-the-seven-hundred-million-dollar-man.html
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chime
> In particular, he showed a slide saying that by Q3, we expect to be back to
> our normal operating profit of 16%.

I don't feel there is anything astounding about the stock price shooting up
based on one person's presentation. While it seems what Steve did was such a
simple thing, he was simply the messenger here. The message itself is huge.
Profits of 16% are staggering, especially during recessions. That number is
calculated from thousands of variables that affect the company's sales,
growth, and overall performance. It is the end result and is all short-term
investors care about.

It would be like having a loved one in ICU and hearing a nurse discuss for an
hour about how they're trying to save the patient vs. the doctor coming in an
saying "he is going to be ok." I don't think the hour-long explanation on the
dedication of hospital staff will give you even 1% the relief that hearing the
doctor's "ok" will give.

So what moves the market? Profits and projections thereof.

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borism
Wait a minute, the guy is proud of his bosses manipulating their stock price
with hype and expectations?

This is ridiculous at best and criminal at worse.

Good that now I know NetApp is one more company I wouldn't invest in. At 90+
P/E I wouldn't probably contemplate it anyway. In fact, here I have another
perfect short candidate.

