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Author: fooooopherenz Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 86  
Subject: Re: Question Date: 4/6/2003 11:54 AM
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we were directed to flat line everything. Takes all the spikes out.

Normally this is what has to be done. However, if a spike can accurately be predicted it should be prepared for. For instance, if you are a manufacturer and your largest competitor is going out of business you should assume that your sales will go up. If you own a donut shop and Krispy Kremes and Dunkin-Donuts are opening within a block of you within the next month you should factor in a negative spike.

Unexpected spikes scare investors because they show that management either didn't consider, or didn't expect a change in their business environment.
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