Likewise, when the rate of earnings growth Starts to slow and begins meaningful deceleration (for instance, a 50% rate of increase suddenly decreases to only 15% for a couple quarters), the security probably has either topped out permanently, regardless of what analysts and Wall Street orogress will dwindle into a lengthy and unrewarding price consolidation period characterized by prolonged sideways movement.
I prefer to see two quarters of material slowdown before turning negative on a company's earnings since the best of organizations can periodically have one slow quarter.
November 29, 2009
Two Quarters of Major Earnings Deceleration May Mean Trouble
Posted by Naga surender
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Stock Market Useful Guide
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