Both companies had faced bad times and has overcome it.
Just management lowering earning guidelines doesn't mean they have lost their execution potential.
Such guidelines varies from quarter to quarter.
While having a discussion regarding this companies someone asked me their earning are lower than estimated which means the stock will not run as they are expecting.
I ask one simple question to them :
Who is given the earning estimate for this companies ? Analyst ? brokerage houses ? TV channels ?
Do you guys really believe in Analyst ? Brokerage houses ? TV channels ?
Have you ever came across any Analyst ? Brokerage house ? TV channels ? apologizing when their estimate goes wrong ?
so ask yourself ? is it really something wrong within the companies ?
Apply the formula : Buy when others fear and Sell when others are greedy.
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