Well said. I'm not short AA, but I am short the broader market and I short specific stock all the time. I'm always amazing at the hate and vitriol I receive when I try to engage in reasonable discussion with people about the merits of a stock when I reveal that I'm short.
Do these people not understand that Shorts (especially at this level) don't really impact the stock price? Are they so insecure that they must attack anyone that has a different opinion?
It's stupid. I'm always happy to have a reasonable discussion with someone with a different opinion.
I think the unfortunate truth is just that most people posting on yahoo message boards have the emotional maturity of a 9 year old.
I don't have a position in AA, just watching closely to see how the market treats AA as the first company to report - and what they focus on. I am short the broader market, via ETF.
So this is a perfect test case for me to watch. I think a lot of companies are going to be in this exact position - beating EPS via buybacks or adjusted numbers, but then missing on the top line. So I want to see how the market reacts to AA tomorrow.
I just think that Revenue is a better long term view. Companies can't cut their way to success, eventually they have to grow. But EPS is important to see how companies can weather short-term market downturns.
So we'll just have to see what the market does with AA. But like I said, it's turned out to be the perfect test case.
Lower now in AH trade. But until the market opens tomorrow, it's all speculation. I've seen too many stocks completely reverse the AH trend once the market opened the next day.
That's exactly why I think most people will start focusing on Revenue. EPS is almost always somewhat manipulated, and now with the broader trend of companies buying back stock to bolster EPS numbers, Revenue seems to be a truer view of company success (or lack thereof).