Not a watch list yet but some observations and additions to earnings plays for next week.
I've seen that earnings move stocks.. There are no two ways about it.. You have a laggard stock you like but it's not moving for you.. .Well find out when it reports and watch it 'come alive' 2-3 days before earnings or it's a real sleeper, it might be the day the earnings come out.. At any rate, it's been a satisfying round in the earnings arena.
From my experience I did notice a few things that I wanted to share:
1)Solid small/mid-cap technology companies (i.e. SEBL, TKLC, PWAV,MCRL) are the best bets for earnings plays if you must deal in technolgy.. My friends in #rttrader, you know who you are. Of course you have to do your homework carefully and look at all the fundamentals, especially in the last week because that is when some of the downgrades/upgrades of estimates are made. In most cases the technicals were quite in a good position as well..
I've had earnings coming out a day after the company reached a 52-week high or had just broken out of a base, or 2-3 breakouts at once (i.e. MACD,RSI and Stochastic)
2) Sectors that are currently out of favor are not worth considering (TSEMF, ZBRA).. Stocks that have become way overbought can be downgraded on the day of the report. Conversely, companies like DHI that have had a nice but stable run will be upgraded on a good report.
3) Stocks that lead their sectors (i.e. ARBR, FGII) are have had earnings suprises in the past should be considered first.
4) Top contenders for 'earnings surprise pops' are the companies that are having a 'turnaround' from a negative prior quarter or two..
(i.e. TMPW)
5) Companies with triple digit growth (WND, ESCMF, QCOM, NMGC,ORBKF) will have the best gains for the longest period..
And to conclude, even if you don't like earnings plays you can just put some of the companies on watch lists and be prepared for a scalp, daytrade or position play that might develop (I've had 2 today with ZOLT) and was in and out of SBUX within a few hours.
Monday November 17, 1997:
ACTN,BGP,CAST,WTSLA,TOY (expect another move in TOY tomorrow) |
