Many more earnings revisions from companies to come for 2013.
I expect many more companies to follow Teva and come down on their earnings for 2013. Unfortunately, we are in a very slow growth environment and it does not appear it will be getting any better any time soon. With Europe in recession, our fiscal leaders not seriously addressing our spending problem and many people still out of work I believe we will hear of many more earnings revisions downward in the coming months. This could also lead to higher unemployment numbers as companies will start laying off more people in order to cut costs.
Yeah CD, between that and the street waiting for the Levin Spring project, whatever it is, to show good success, the waiting game is still in full gear. I sure hope Levin gets it right or shows the street something that is so to speak short order. Dead in the water is getting really old.
Now now. It's not dead in the water. That implies it's still floating. TEVA hit $55 at the beginning of 2011 and it's been sinking ever since. Don't get me wrong .... every once in a while someone bails the boat out the PPS goes up (a little).
What I'm struggling with is EPS have been increasing along with the dividend payout .... More or less in a positive direction over the past two years. Yet there is an inverse correlation between the EPS/Divy and the PPS of the stock.
Something is broken. Maybe Israel should just bomb Iran and get it over with ....
You may be correct but government spending in the United States is not what will cause the earnings decline. Europe is remaining in recession because their governments went on an austerity path instead of stimulus. Whether you like the stimulus spending here in the US or not there is no doubt it helped. Every credible economist says so and so does common sense.
Europe is in recession because they've made long term promises years ago and now they have finally come to the realization they can't keep them. How could they? They are unrealistic.
The spending problem in this country is nothing short of alarming at this point. What is even worse is the failure by our President and leaders to get serious in addressing them. I thought when we had our credit rating reduced this past year it would've sent a strong message, but Obama and company continue to play games. I am sure Fitch and Moody's will revisit this again sometime in 2013. Obama puts in place a commission like Bowles/Simpson, which offers a balanced approach, but then doesn't take their advice. If that is not a clear indication of how serious he is then nothing is. Why put the commission together in the first place?
As far as "the stimulus" goes I am still trying to find out where all that money went. Aside from unemployment being extended for 200 weeks, more people on food stamps and other government assistance I don't see much to be encouraged about at this juncture.