This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Maven: Straight Talk

While Ms. McLean stands as the Patron Saint of All Good in Business Journalism, The Business Press Maven also wants to fall at the feet of Jeff Matthews this week. Mr. Matthews, who writes the "I Am Not Making This Up" blog, took a stiletto to KB Homes (KBH - Get Report) in a way that needs to become more common: He was not fixated on the numbers expectation game, which puts the company at the advantage as they, their flaks and the investment banks manage the numbers to within a whisker of their lives.

Rather, Mr. Matthews merely compared what was happening (order cancellations) to what the company said would happen just a couple of months ago. Back then, the company prattled on publicly about how business was groovy, even improving in weaker markets.

Comparing and contrasting claims vs. reality is much more helpful to investors than telling them that a company hit a particular set of numbers, without even telling them if the numbers were last tweaked a year before or two seconds ago.

Another thing that gives investors only a soupcon of guidance is what you also saw with KB Homes coverage (see: The Wall Street Journal): a mention of the cancellations, then a sprint right to corroborating evidence in the form of Toll Brother's (TOL - Get Report) recent bad news.

All fine and good -- but management also needs to be hoisted by the petard of their own words, a la Mr. Matthews.
A journalist with a background on Wall Street, Marek Fuchs has written the County Lines column for The New York Times for the past five years. He also contributes regular breaking news and feature stories to many of the paper's other sections, including Metro, National and Sports. Fuchs was the editor-in-chief of Fertilemind.net, a financial website twice named "Best of the Web" by Forbes Magazine. He was also a stockbroker with Shearson Lehman Brothers in Manhattan and a money manager. He is currently writing a chapter for a book coming out in early 2007 on a really embarrassing subject. He lives in a loud house with three children.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CHNR $2.12 0.00%
KBH $16.58 0.00%
TOL $38.44 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs