Tom, there is a fine line when a 'super' stock becomes a bad bet. EESI, QCOM, even RCOT was a good trade for a short time. Holding through earnings is a decision that is made based more on the technical picture of the stock than the fundamental. There are no firm rules, which is why I say just look for "1" bounce, one trade and go on to the next stock. If the up trend is exceptionally strong and there have been quite a few like TOM, VSIO, FAF, USWB, CREE, CLX, TXCC, ANCC, AXNT, then I would wait till the trend abates..
Ironically, A company like SRCL that has almost tripled or even XEIKY can be a bad bet holding through earnings just because it is so 'healthy'.. and a 'crummy' company like HTCH can give 40% in two days.. or TOM, BKE can be perfect because the sector has been beaten down and not holding TOM through earnings cost me over 5 points even with the 11 point gain. I got about 40% of the 136% that USWB ultimately gave. Even CREE, one I was in the longest, I missed over 30% of that gain as well. |
