We may see a lot of action this coming week based on the old adage - "Buy on the rumor, sell on the news!"
One such stock was JNPR last week. On Thursday, after the close, JNPR handed out a pretty good report - one would expect a nice "pop" in the price the next day. One of the articles reporting on the earnings report is at:
cbs.marketwatch.com;
[snip] <<Juniper Networks (JNPR: news, chart, profile) posted a third-quarter profit of $7.2 million, or 2 cents a share. In the same quarter a year earlier, Juniper posted a loss of $88.3 million, or 24 cents a share. Revenue came in at $172.1 million, 13 percent higher than $152 million the year before.
Excluding items, Juniper earned $14.7 million, or 4 cents a share. Analysts surveyed by Thomson First Call were estimating Juniper to post pro forma profit of 3 cents a share on sales of $167.4 million.>>[snip]
On Friday morning at the opening bell, it looked for a moment like JNPR would do well. It closed at 18.40 on Thursday, and opened at 18.85 on Friday morning - bounced off 18.90 in the first couple of minutes and at the end of 10 minutes from the open was trading under 18.20. From there on it was mostly down hill for the rest of the day, finally closing at 17.62 for a loss of over 4.2 percent from Thursday's close.
That's what you get for announcing very good news.:) - It just wasn't good enough. Could be a lot more action like that this coming week.
Don |
