From the posting How Is KNM's Earnings Guidance Faring?
- Mun Wai said...
Moo,Quoted from your posting on 9 Mar : "Now because KNM's is telling all the research houses that it will earn so much, naturally the research houses have to base their fair value target projection for KNM based on these high numbers."
By sticking tothis unrealistic earnings guidance and consequently arrive at their earnings estimates (AmResearch even says 383m), won't the research houses are confusing many naive minds?
Well, in my usually flawed and wrong opinion, if a CEO or management opens its mouth and guides its earnings, I believe that the analyst/research reports have no choice and they have use that GUIDANCE number!
This is what the INSIDER, the CEO, the TAIKOR is telling them. The analyst cannot simply say, 'Oh no, dear Bossie, your GUIDANCE numbers are very rocket. There's no way your company can achieve those numbers!!!!'.
It's like telling the CEOs they are BS-ing! They simply cannot do that, can they?
And now that they do follow the guided numbers and when the actual earnings are way below estimates, the analysts would probbly feel silly.
Anyway as per the March posting: What I Think Of KNM's Earnings Guidance
Let's compare KNM's guidance previously and compare to what KNM actually earned.
Such comparison should be useful, yes? At least we get to know the quality of KNM's earnings guidance.
So how did KNM do?
fy 2008, KNM made 336.175 million. (KNM guided 450 million)
fy 2009, KNM made 257.847 million. (KMM guided 700 million)
Yeah... naturally KNM tanked big time back then!!!
But the point is KNM's guidance back then was horrendous and way off target!