Speedcast hits a speed bump

Chief Investment Officer and founder of Aitken Investment Management
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Unfortunately, when you are a well-owned growth stock, you can’t downgrade your growth expectations and avoid serious share price consequences. I have to say I was very surprised by the profit miss and guidance downgrade issued by satellite communications company Speedcast (SDA), yet I can’t be surprised at the 40% share price drop to what equated to 20% downgrades to consensus earnings estimates. In what are unforgiving markets, dominated by momentum investors, where P/E is also subtracted alongside earnings downgrades, the punishment for the crime nowadays is large.

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