After plowing through news reports after a company reports earnings, it’s often refreshing to take a look at the Motley Fool. While wire services, newspapers and most stock-oriented blogs tend to focus on whether or not a company has “met Wall Street expectations” for the latest quarter, the Fool — a Web site for investors — looks at business fundamentals, management, and all the other factors that should be considered by anyone who is not simply trying to make a quick buck from the attention-deficited whims of Wall Street or the often irrelevant “expectations” of stock analysts.
That the Fool is for “investors” is an important distinction. Traders aren’t investors, and neither are stock analysts. So, for example, while most news accounts of beverage-maker Hansen Natural’s latest earnings report focused on the fact that it didn’t please analysts and sent the stock into a nosedive, the Fool’s latest article on Hansen noted that the company has solid management and sound fundamentals. “Hansen has turned around negative margin and growth trends,” the site noted, “thanks to highly cost-efficient distribution agreements with Anheuser-Busch in the U.S., Cadbury in Latin America, and Pepsi in the Canadian market.”
It’s worth noting that this Fool post came before Hansen released its earnings, which were, by any rational assessment, stellar. Profits soared 43 percent. Hansen’s market share for its Monster energy drinks continued to grow. It was a great quarter.
But you wouldn’t know it was a great quarter if you relied on most mainstream news accounts, which all highlighted the fact that profits fell short of analysts’ expectations by a few pennies per share, and you wouldn’t know it by paying attention to Wall Street traders, who knocked about 20 percent off the value of Hansen’s stock in the two days since it released its results.
