The single digit growth projection is less than the projected and actual growth from the previous year. Grow too fast and investor expectation can soon become unrealistic. When unrealistic expectations go unmet, regardless of how unrealistic they may be, the company's stock takes a hit even when the fundamentals have remained unchanged.
Case in point: NTDOY took a pretty decent hit following the release of the annual projections. If the projections had been more optimistic, the opposite would have happened. I'm going to continue to adjust my stake through 2008, but I'll probably end up taking everything off the table by Q1 2009 unless estimates are revised upwards due to a new catalyst.
If the stock market ran purely on investor logic, anyone who read the company financial reports would be posting consistent, outrageous quarterly gains with their portfolios. Unfortunately, this is not the reality.
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