Jack & Jim S.
I always thought stocks act/re-act differently to earnings (both good & bad). If this is the case, APCO is acting quite normal for itself if history is any gauge. I'm not a TA person, but I printed out a year chart with corresponding earnings and this is what I found:
Aug. 4th- APCO reported record revenue & eps of .08 vs. .07.
The stock fell back before trending up the last week of Aug.
It wasn't till mid Oct. that APCO on heavy volume broke through to the upside.
Oct. 30th- APCO reports record revenue & eps of .11 vs .06.
The stock retreats on low volume and bases in November.
Beg. Dec. APCO breaks to upside on heavy volume, setting
high for year of 7 5/8, then retreats to mid 6's on low volume
If the trend is your friend and APCO performs according to past history, there never was the possibility this earnings report would
propel us into the 8's (as some have hoped for). Assuming APCO will act the way APCO has acted in the past, I predict a fallback to the low to mid 6's and basing there till the end of Feb. on low volume. Not till late Feb. or beg. March do I expect an upward move into the 8's with APCO hitting a new high of $12 BEFORE next earnings report.
Of course, should APCO get additional coverage, the highs could come faster, but I wouldn't count on it. IMO, APCO has done exactly what it has done in the past with regards to earnings announcements; it falls back to a higher low, bases there a while then breaks to the upside. The lesson I learnt is to not buy before earnings(no matter how good) are released. Wait till the fall back to buy. Again these are my opinions only, but would be interested in those "chartests" who thought the stock would increase after earnings,as that has never characterized the performance of this stock before.
APCO is performing true to form, and I am comfortable with that.
Skane |
