Lynn,
If there's any truth behind the post you attached then we have a couple of options...
First, ELNK has never disappointed analysts relative to meeting earnings expectations, it's never happened. In fact, historically they've beat the street more times than not, the info is a 'I heard it on CNBC' which is true but I'm interested in the context of the discussion. The info clearly did not come from Earthlink directly.
Secondly, the market pre-prices the earnings event prior to the announcement, that's why there's a selloff after a good report i.e. NDB,YHOO,AMTD because the event was anticipated and priced accordingly, the market is equalizing itself. When the market prices in a selloff prior to earnings, a negative report may be met with an increase.
I had 2 positions in ELNK, 1 was stopped out at 65 15/16 this morning, the second is a covered call, July 60's. Since the release is after close on Wednesday I'm holding thru at least Tuesday, lets talk tomorrow.
Keep in mind, the CPI and PPI numbers are out this week and are expected to be flat!!! This is good news. Dave |
