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Business Reporting Pet Peeves
By: Analytical Wealth   Tuesday, July 08, 2008 11:12 PM
Symbols: GM, SUI, TGT, WMT
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Calling companies like Wal-Mart and Target competitors even though they have dramatically different customer demographics, just because they're both retailers. No one calls BMW and Hyundai competitors and they both sell cars, why do the same with Wal-Mart and Target?

Rarely noting that the YoY customer spending increases (for the past year or so) have been less then the YoY increase in  inflation, thus rendering the so called "increases" null and void.

The consistent focus on automaker market share when there is very little relationship between market share and profits, because selling 1 car for $X in profit is better than selling 5 cars for $0.5X in profit.

The media and the market celebrating the beating of lowered expectations (which is arguable subterfuge on the part of companies, i.e. under promise and over deliver). A recurrent similar situation is when data isn't as bad as originally anticipated, but it fails to change the long-term trend.

Acting as if the data of one day will change the long-term trend, E.g. all the headlines that note oil pulling back as if high prices are over gone for good, followed by a headline reporting a new high the following day.

The foreclosure headlines that blame the credit crunch, falling prices, etc, as the reason for foreclosures, as opposed to economic stresses and affordability.

Bad headlines in general, take this one: "GM US sales beat Toyota in June ", while technically correct it's very misleading when you consider that GM is trying to raise cash in order to survive.

Referring to all ARM mortgages as subprime mortgages, when one doesn't necessarily imply the other.

Disclosure: at the time of publishing the author didn't own a position in any of the companies mentioned in this article.

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