Example of How CNBC Hurts People
16:39 America/Los_Angeles 10 Nov 2009 
2 Comments
CNBC has destroyed so many innocent people’s accounts out there. From the loose cannon bottom caller Jim Cramer to Larry “Goldilocks” Kudlow the whole crew has spun optimism with endless daily verbal diarehea. I think that what people deeply despise about CNBC the most is that they have taken a beautiful thing like optimism and tarnished it. They have tarnished it with :
- Zero accountability
- Touting strategically tailored information (For example they love showing very short term charts of economic numbers, which leads viewers to believe things have completely recovered even though the number is still down 50% from the peak in 2007)
- Cheering completely wrong information (an example below)
Recently Michelle Caruso-Cabrera was reporting earnings central below… watch and I’ll point out the data.
(Go to Full Post for the rest)
So here’s a rundown of the main points of information:
- 80% Beat Estimates
- Q4 earnings last year were $5.62
- Q4 earnings estimate for this upcoming year $17.13
I like to get my information from the horses mouth so if you go to Standard and Poors website they have great information there updated all the time. To find the earnings spreadsheets go to this link and click on the S&P Earnings and Estimate report. So now with the information directly from the Standard and Poors, which is what CNBC was reporting on (S&P500), we can compare.
- CNBC 80% beat estimates…. actually only 50.7% beat estimates
- CNBC Q4 earnings last year were $5.62 ….. actually earnings last Q4 were -$0.09
- CNBC Q4 earnings estimate of $17.13…. actually $16.73 (which is pretty close finally)
Seriously where are they getting this information?!? At the bottom of their slides it says the source is Thomson Reuters, but I don’t understand how they can be so far off on stated data. And as a lesson for CNBC why not give some more of the picture to inform your viewers with points such as:
- Only 27.2% of those who have reported have beat last years sales numbers.
- We currently have a P/E ratio in the S&P500 of 26.57, which is high historically
CNBC needs to go back to the drawing board… they have lost any kind of reputation they had before with this recent crash. Everyone sees them for what they really are now, which is cheerleader robots made to make their advertisers happy.
CNBC is wall streets’ baby. Wall street set up CNBC to misinform the public. It’s a means to tell the public to buy at the top and sell at the bottom so wall street can make more $$.