Why Are Investors Surprised ?

If you are transportation

company….

• working on a net margin of 3%,
• trading on a P/E ratio of 14 (vs. the underlying index P/E of 11),
• when Goodwill equals a figure that is half of your Market Cap,
• dealing in a fragmented marketplace with rising fuel and wages costs and
• that has negligible free cash flow;

why are investors surprised when the stock falls 15% on bad news?

In capital markets, it is difficult to pick an investment winner but it should be easy to figure out what to avoid.