Editor in the United States
Hey there, I’m arnob. I’m an editor living in the United States. I am a fan of reading, innovation, and web development. I’m also interested in painting and gardening. You can read my blog with a click on the button above.
Welcome to my Blog! The objective of this blog is to ultimately provide a comprehensive resource base for avoiding the bombs in your portfolio.
The blog is called Cockroaches because profit warnings often come in more than one; as Warren Buffett says, “there is always more than one cockroach in the kitchen.” Why is this?
When management make warnings, they don’t really want to do this, so something has slipped and they might be over-optimistic on trying to scramble back and not lose credibility – often though reality catches up with them.
I will only use real-life case studies as often as I can. Your comments and experiences will also be useful in providing a comprehensive guide to improve all reader’s understanding of this topic.
- Please also highlight downward changes to earnings guidance, the more subtle, the better that you come across.
Also, it would be useful if I provide case studies and examples – if you have experiences of when similar events didn’t create such a negative future event – as I am sure many management teams scramble to make the numbers or worse account aggressively to make them.
Ok, well I hope we all learn from this and avoid the bombs -we may also be able to short them when we see the first cockroaches appear – when we have a more thorough understanding of course. Good luck!