From late 2009 and for all of 2010 the talk has been of how the stock prices were reflecting good earnings and that February/March 2010 would be the moment of truth as we hit earnings season (for companies with end December interim or final).
So now it is behind us and last night on CNBC Hard Line I was on air with Bronwyn Neilsen, Gerhard Lampen and Paul Theron discussing just this subject.
General consensus was that results were largely in line with expectations but Gerhard made a good point when he said that forward looking statements from CEO's were probably more cautious then the market would have liked and largely we see this in that the market has been sideways for 2010.
Further I have long been commenting that while 2008 was all about sell anything and 2009 was about buy anything, 2010 is going to be about stock picking. So I did some digging before the show with the idea that the market could tell us which stocks had had better results. The logic is that if we group stocks together looking for those that have out preformed price wise we'd be part of the way to finding the winners.
So here's what I found over the past 1 and 3 months.
- Platinum - IMP has out preformed AMS
- Diversified miners - BIL has out performing AGL
- Banks - SBK has out preformed ASA, NED and FSR
- Large food retailer - SHP has out preformed PIK
No not a sure thing, but a good place to start digging.