The Significance of Raising the Bar

Raising the bar. These are three little words that have taken on a currency, a virtual life of their own in this market. You have to know and understand the power of these words because, in many ways, they have become the determinant of the next 10 points in a stock.

When a company issues a quarterly report, it then presents expectations for the future. In the New Economy, a company that sits still, or doesn't raise the bar, gets pummeled. But a company that raises the bar, or sets new, higher expectations, is a company on the move.

Everybody in the know knows this lingo. It is incredible how often it comes up. Why did BEA Systems (BEAS Quote) not go up after its blowout quarter? The company didn't raise the bar high enough. Why did Portal (PRSF Quote) go up so big?

The bar was raised high. No matter that BEA Systems may have just been conservative, if that bar doesn't go up, there is all heck to pay. ...