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February 16, 2006
Goldman Warns
From Gregory Zuckerman of the Wall Street Journal:
***Hold on Tight: Cuts in Profit Estimates Loom*** It is unusual for a major investment firm to urge investors to steer clear of a big stock. It is even more unusual for a firm to tell investors to avoid 30 such companies. But that is what analysts at Wall Street's Goldman Sachs Group Inc. are saying about a slew of companies, including Broadcom Corp., MedImmune Inc., Agere Systems Inc., Marsh & McLennan Cos., Janus Capital Group Inc., Salesforce.com Inc., and Emmis Communications Corp. The worry: Over the next few months, analysts will be slashing earnings estimates for all these companies as employee stock options begin to be counted as an expenses.
Jee, what do you think would happen to Broadcom (BRCM) on an estimate trim? There is consolidation support just below 60 and trendline support around 50.
Posted by Arthur B. Hill at February 16, 2006 06:04 AM