Optimism as the Smoke Clears
Posted at 3:25 p.m. EST on Tuesday, Feb. 11, 2014
It's good to see some stocks come back that really didn't disappoint, but were simply conservative in guidance. Two that I follow, 3M (MMM) and Boeing (BA), were scalded when they offered tempered views of things and people believed that the worst was about to happen.
At a time when you can hear that China's slowing, that our employment gains are minimal, that Latin America and India seem on edge and that the emerging markets are teetering, do you feel like coming out and saying that things looks great for your big industrial company that needs exports to most of these countries to make the numbers? Who would be so insane as to say that?
United Technologies (UTX) hinted as such, but only after it had already guided down. Alcoa (AA) talked about this, but said things could go right or wrong. Honeywell (HON) had a story pretty much without caveats, but it has some really good secular trends going for it.
But 3M and Boeing are squarely in the sights of the markets that are most on edge, so what's the point of raving about them?
[Read: 3 Reasons Bears Never Prosper]
Believe me, this is not an uncommon problem. For example, shouldn't Apple (AAPL) have warned people on the previous conference call to this one about all of the pitfalls ahead? Would that have eliminated the debacle, even as the debacle allowed the company to truly buy stock at the right price?