Rodger, what you say about C-Cube is definitely true. It is a stock I love to follow, and is a steal now. They will be the major player in DVD technology, and MPEG chips (I'm really not too knowledgable about this). Anyway, while they just did announce a huge deal w/ Zenith, I am wondering when they will begin to realize profits from the deal. Does anybody know the answer to this? Also, are earnings forecasted to be THAT spectacluar? They are way ahead of themselves in technology, and it is said that most of the applications for their chips have yet to be discovered. I suppose they have decent earnings from their satelite/tv contracts...but what else are they into currently. I do not have a position in CUBE, but if there is a dissappointment in earnings, then I will buy. CUBE is highly recommended by most brokerages, and on most of their top picks list. I feel very strongly about CUBE, and the only reason I have not picked up some shares is because of my financial situation. If I sell a stock that is really not doing much for me now, I can have about 1000 dollars to invest in CUBE. However, at such a high price, it would be hardly worth it when the commisions are considered. If it goes much lower on bad earnings, that's when I'll buy.
About this general consensus about IOMG earnings...the one where if it only meets estimates it will plummet... Are there any current or historical facts that could back this up, or is it just somebody's "IMHO"? IMHO, I feel that this may not be true. If IOMG severely misses estimates on the downside, then sure it will plunge! However, if earnings are in line with estimates, will it really be THAT adversely affected??? I don't think so. After earnings come out, I think IOMG will be bombarded with positive announcements that are bound to happen sometime (so why not now?), like OEM deals.
What I am thinking about doing is buying about 30-40 shares of IOMG (depending on the current price) the day before earnings come out. If they come out flat, or above estimates, then I will hold, and probably sell not too long after for a large profit. If earnings are poor, and the stock plummets, then I will will buy about the same number of shares at a much lower price. Either way, I know that if I hold for a couple of quarters, I will be seeing a significant profit.
Does anyone want to comment on this strategy??? Is it way too far-fetched and risky?
Please send me your advice :)
-Brian |
