RE:The Reaction is Way OverdoneSomething else to think about.
If these analysts are so all knowing and smart as everyone makes them out to be, you would think they might have adjusted their estimates, based on what they had been told about the plans for the business and the FX environment for the CAD, as well as other costs that might be related to expanding a company's operations. Why didn't they?
I can akready ear the answer from some of you out there.: Avigilon doen't give them enough guidance. Obviously, that's a double edge sword. Give too little information and analysts appear to be lost. Give too much information, and your competition is onto your strategy before you have a chance to implement it and they are all over you, which, if you really think about it is extremely counter productive. Take your investor hat off for a second and put on your entrepreneur hat on, which also, by the way, is what Alex Fernandes needs to do on a daily basis since he' both responsible for makeing sure the business runs properly AND has a lot more at stake as an investors then the majority of people who will ever read this post.
Something else to think about. If Avigilon was growing revenue at an even faster pace and had no earnings or negative earnings, would that be better or worse? The obvious answer would seem to be worse, but looking at some of the other companies analysts report on and investors drool over on a daily basis in technology land, or even retail land if you think of Amazon, not having any earnings seems to be the way to go. ;-)