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Symantec Corporation Message Board

  • long_term_tech_investor long_term_tech_investor Oct 25, 2012 10:05 AM Flag

    Misleading Results, Trading on Hope

    This morning the CEO was quoted as saying he had little to do with the quarterly results, the team below him did all the work. Well, that team he refers to is the same team that's been in place for many years. So why suddenly did Symantec's results defy the industry and macro environment? Because the numbers are not real. They are all but guaranteed to be a result of stuffing the quarter on discounts and up-sells, as indicated by comments in the transcript from the earnings call and other commentary in the last 18 hours.

    Equally important is the fact even th analysts are saying this morning that Symantec is now trading on pure "expectation of change". Not reality,but HOPE. HOPE that has built in expectations of certain things that may not come to pass such as divestiture and sizable dividend and continued execution. Of which, there is a high probability is not happening, or not to the extent justifying the current stock levels.

    The above is not simply MY opinion, it is the opinion and statements of others as well.

    THIS HAS NOW BECOME NOTHING BUT FORWARD-HOPE/MOMENTUM PLAY AT THESE LEVELS. NOTHING ABOUT THE REPORT YESTERDAY JUSTIFIES A 10% GAIN, MOST ESPECIALLY IN THE CURRENT ENVIRONMENT. The risk to investors is now even greater than it was before the earnings report. If long stay protected! The slightest bit of unexpected bad news (or something affirming that expected good news is not transpiring) is going to deflate the shares rapidly.

    As much as some bashers here on the forum will disagree, the facts above will prove themselves out in time.


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    • long_term_tech_investor long_term_tech_investor Oct 25, 2012 11:05 AM Flag

      bump over board spam

      BTW, it was interesting to see only a few analysts nudge price targets, that's another telling sign. Most are playing it wise, they probably realize the results were likely stuffed and are awaiting another quarter of execution, and to get confirmation on what exactly the new corporate strategy will be comprised of. (That is the sense I got from the analyst's tone and questions on the earnings call as well as in some of the articles today)

      If the results had come in somewhere between slightly light and in-line they would have been a lot more credible. The numbers reported in context of the history, environment and peer-execution simply do not add up whatsoever, so this is a very suspect situation where extreme caution should be taken, even more so now than before the report.

      Once the dust clears the shares will probably settle in the vicinity of $18 and drift with the market, we'll need to see how the technicals formulate in the days ahead.


    • I don't usually give investment advice. However I will make an exception. Cover your short and move on. cheers

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