AnalystConferences.com |
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Frequently Asked Questions about Analyst ConferencesWhat should I look for in analyst conferences?Analyst conferences provide specific information, but also allow you to judge management and even the analysts. Management will often talk about trends at a conference. An old product's sales may be declining, or a new product may have growing sales. The operating expenses of the company may be trending up or down. Management can give details ("color") that help you judge whether a surprising number (say, for example, Research and Development expense) is due to a one time event, or is going to have a long term impact. Analysts tend to have certain standard questions they ask that appear cryptic to newer investors. They often want to know about margins (gross or operating). Knowing the future trend of margins helps analysts predict earnings. Some times analysts ask questions that management would prefer not be asked. Enron's stock price started collapsing after one analyst dared to question Enron's accounting methods. Some questions are really asked in order to get clarity on other companies, such as competitors, customers, or clients of the company holding the conference. Companies that report early in the reporting cycle are often taken as indicators of the health of their economic sector. A typical question would be, "Was this growth from a growing end market, or did you gain market share?" What you can learn of value in an analyst conference depends on what your own investment strategy is, how open management is with investors, and the quality of questions from analysts. What is an analyst conference? |
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