Zeev's Turnips Patch-No Politics (ZEEV)

[ayahuasca]

Thankfully I didnt take a position so I'm just watching the carnage from the sidelines. Over the weekend I'm going to try to figure out why forward guidance was so dramatically reduced. On the surface, they are guiding to earnings of $1.44 for '06, which is a meager 16% increase from '05. Put a 16 multiple on $1.44 and you're looking at $23/share. A 20 PE and it's $28-29. So this haircut seems in order, at least on the surface. I'm just confused by the extent of the reduction in guidance and it doesnt jibe with the progress they seem to be making.
Right now I'm heavily in energy stuff as mentioned the other day, and nursing that a bit this morning. But better that than a DRIV position today, that's for sure. I've been in that boat too many times before.