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Technology Stocks : SBS Technologies (SBSE) - Undiscovered gem

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To: r. c. cummings who wrote (634)7/11/1998 11:39:00 AM
From: Clay Takaya  Read Replies (1) of 1540
 
If you look at the chart over the last couple of years, the stock has consistently run up before earnings announcement date (with the exception of the fire sale over a year ago). Therefore, if the market as a whole stays stable I expect to see a runup in the next week.

This above scenario is good for us as keeping share price down actually improves EPS because SBS uses a formula based on stock price to factor options into its shares outstanding for diluted EPS. I believe this formula still operates. Although farfetched, the idea that someone is purposely manipulating the stock price down to inflate earnings has crossed my mind.

If the runup occurs, I am going to base my trading next quarter on this scenario and see if I can make some money on it.

Good luck all,

Clay
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