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Gold/Mining/Energy : Direct Focus Inc. (DFXI)

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To: freeus who wrote (696)1/11/2002 1:15:16 AM
From: trilobyte  Read Replies (1) of 768
 
Hi Freeus,

you're right, DFXI has often sold off a little in the week
or weeks immediately after earnings. Sometimes in the
15% to 20% range. So you may have a chance at a good trade
if you don't mind paying cap gains, time it well, and don't
mind taking the risk of being left behind. Could it be
different this time? Maybe... I expect DFXI to
significantly beat rev and earning expectations. Look, the
estimate is only for a 2ct beat over the previous quarter
(estimate is for 48 cts vs the 46 cts of last quarter).
If this really happens, I'll exit the stock RIGHT AWAY... I
expect earnings of at least 60cts/share when the Schwinn
business is taken into account. So all this to say that
eventually, Wall Street will find the numbers so compelling
that the stock won't sell off after earnings. Instead,
we'll have a large gap up (maybe 3$) and go up from there.
That is a possibility I wouldn't discount. But remember it
is only speculation on my part!!

Trilobyte
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