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Subject:  Re: jargon query Date:  12/13/1999  3:32 PM
Author:  ccsmith Number:  458 of 2244

Hello ashhrish, and Welcome!

You asked: 1.Can someone tell me what exactly the "First Call mean earnings estimate" is???

Well, there is this company called First Call ( )that tracks the recommendations of the various analysts that follow any given stock issue. (There is also a company called Zack's [ ] that does virtually the same thing.) The "First Call mean earnings estimate" is simply the arithmetic mean of all of the analysts' earning estimates that First Call is aware of. You may also see this (incorrectly) referred to as a 'consensus estimate.'

2.In an article referring to Ppa Johns stock prices, the author talked about the company having a good expansion plan and "solid fundamentals", could someone expand on solid fundamentals?

Fundamentals are the numbers, basically. Whenever you ask what the profit margin is, or the percent change in revenue, what the debt to capital ratio is -- all of that stuff -- you are performing 'fundamental analysis' to a greater or lesser degree. So, when you read that a company has 'solid fundamentals' you know that, in the opinion of whomever wrote the report, the company's revenue, margins, debt, R&D expenses, etc, etc etc are in line with what the report author thinks they should be.

Put another way, the phrase is largely meaningless unless you know exactly what criteria were used to categorize the co's financials as 'solid.'

FWIW, my advice is to do your own research, and buy (or not) based on your own findings. At least that way you will always know not only exactly what you own but why you own it.

One Fool's opinion,


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