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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Jenna who wrote (17400)10/21/1998 11:53:00 PM
From: Jenna  Read Replies (3) of 120523
 
BEST, CDWC, ERTS and ODP all beat estimates.. Comment:

BEST was a really good play for weeks, but it seemed overbought after reaching a new high so we'll see. CDWC is the fourth time this was an earnings play for last 4 quarters, and ERTS was the third as well. ODP this was my first, but the stock did not really offer any anticipatory upswing..

I want to stress to newbies and others who don't completely comprehend what earnings plays are. They are simply stocks that move around the time they report earnings. This movment can start from 7-10 days before they report, but I usually wait for about 7 days. It does not mean it is a play a day before earnings and HOLDING through earnings. The trick is finding the 30 or so companies from the vast database and then track them. You can't just take any old stock that reports earnings. You can, of course, hold through earnings but it is more risky than just making the play and selling right before earnings.
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