Wednesday, February 13, 2008
Earnings or Sentiments?
Earnings ? These refer to the companys profit in lay man sense and are measured or recorded over a fixed time interval. If you pick up any invest ment consulting magazine in india or for that matter anywhere you would come across quarterly earnings which compare this quarters earning to previous quarter or to the same quarter of last year. It is just for comparison sake. Of course higher earnings mean higher profit for the shareholders and hence the share price should rise. But - does this happen so? Yes at times and no - it does however gives you the facts about companys health, the share prices may be driven by several other sentiments or global factor,but this helps you in keeping the profitable shares and warns you about the impending danger- So watch out and be safe !