Analyze This: Flying Blind In Financials


With fewer and fewer companies willing to offer revenue guidance, how can an analyst provide investors with insights that are smart and well informed?

As we’ve been telling you, Intel , Verizon , Kodak, Starbucks , Microsoft and Sun are just a handful of the growing number of companies no longer offering formal guidance.

Of course not every firm provides guidance, but by and large it's a common practice. Well it used to be. "The number of companies no longer offering guidance has increased by 30%,” explains Dylan Ratigan.

And that left us wondering, how does an analyst come up with insights. So we posed that question to Sandler O’Neill analyst Jeffrey Harte.

“It’s certainly a challenge,” he tells us. There are two things we try to do. At the end of the day you have to have a macro-call. And then look at as many data points as possible quarter to quarter.”

Want to know more? Watch the video now!

Read more:

> Analyze This: Flying Blind In Internet Stocks

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Trader disclosure: On Feb. 3rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE): Macke Owns (ERTS), (TM), (DIS), (MS), (SDS): Macke Owns (ERTS) Calls: Finerman's Firm Owns (DNA) & (DNA) Call Spread: Finerman's Firm Owns (MSFT), (TYC), (IBB), (XBI), (TBT): Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO), (BBT): J. Najarian Owns (WFC) Preferred; J. Najarian Owns (BAC) Preferred; J. Najarian Owns (C) Preferred; J. Najarian Owns (FCX) & (FCX) Long Calls; J. Najarian Owns (GDX); J. Najarian Owns (JPM) Preferred; J. Najarian Owns Gold Futures; J. Najarian Owns (ISRG) Call Spread

Sandler O'Neill Has Received Compensation From (GS)
(GS) Is A Client Of And Receives Non-Investment Banking Securities Services From Sandler O'Neill

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