A couple a months ago, I got a request to be interviewed for survey by Thomson Financial. They were interviewing IR folks, and the first question was : Do you think we're in a recession and why or why not?
I immediately said "Yes," because my clients were all getting jittery about forecasting the following quarter. To me, it felt like 2001, but not to such an exaggerated degree. It was nearly unanimous, though, that they said the back half of 2008 (2H08) would see a return to growth - implying a near-term slow down.
Well, now I see why. This earnings season, two of my clients (so far), and even more clients of the firm, reporting lower than expected revenue. Since the time of the survey, some clients have had headcount reductions and other cost-cutting moves.
When things are going well for my clients, my job is a lot of fun. The Street is happy to talk with you, as the stock is going up and "you" are making them money.
The opposite is also true. When the economy is tough and financial results suffer, the Street gets mad they are losing money through stock price declines. They call you and demand to know why, but they already know the answer. They often want to vent, and we IR folks have to take it. Sometimes, they're cool about it, other times not so much.
So, I am hoping that "The Economy" turns around soon, if for no other reason, than my incoming calls will be more pleasant.
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