Quote:
Originally Posted by GregWeld
Every QUARTER a company reports it's earnings... that's every three months guys! And every three months - they have to meet or beat the street. Sales - profits - unit sales - and on and on... have to be growing. IF not - the stock gets crushed. Never forget this key metric. The entire market is all about growth and growth gets rewarded - misses get clobbered.
So regardless of whether or not a company is selling cameras or cell phones or bread... Your investment needs to be based on the future - and what the market thinks they'll be able to do going forward. End of story.
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This is what happened to Whole Foods. You can even pull up the chart and see the very day this occurred. I feel it's a result of the traders not liking what they saw versus a fundamental change in the business. I'm confident that they will rebound and learn to better compete against the new companies that are slowly expanding and becoming more of a competitor to them. I'm in this for the long haul so I'm not worried. Now, if they don't turn it around and continue to lose out, I'll reevaluate my position. For now though, I'll hold tight and see.