Well, investors depend on what the CEO says. What he is trying to avoid is sounding optimistic and then falling short of expectations. The up then down in the

Well, investors depend on what the CEO says. What he is trying to avoid is sounding optimistic and then falling short of expectations. The up then down in the stock price looks bad. However, its a good point that we should want a correct representation instead of a pessimistic one. We should seriously wonder about a CEO who drastically under predicts performance just as we would one who over predicts it.