facher83 said:
Generally speaking, posting the URL to the article in discussion gives credit to your post... most people here will go and read the link for themselves, and only then pass judgement on any comments... I'm more curious on the stock pricings. |
5 year price chart
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=NTDOY&sid=6137&o_symb=NTDOY&freq=2&time=12
Analyst estimates
http://www.marketwatch.com/tools/quotes/snapshot.asp?siteid=bigcharts&dist=bigcharts&symb=NTDOY&sid=6137&time=13
In the stock market, you are paying for future value. And usually that means future earnings. As can be seen in the price chart, buyers started to bid up the price when they correctly forecasted the large increase in earnings (up to 1.42 in 3/07 to est. 2.42 in 3/08). Now the analysts are forecasting a slow down in the increase of earnings to around 25%. ($3.01 in 3/09), thus limiting the potential gain in the stock price.
Torturing the numbers. Hear them scream.