Yes..I will not hold ANF through earnings either. Unfortunately it is not always as clear cut. A stock that has been doing poorly, has been beaten down, but now starting to trend up nicely would do well holding through earnings. Don't get the idea every good stock that has a good earnings report will be shot down 5 points or more.. There is still an important factor of breaking upper resistance and going on to make further gains.. It is just in my opinion 'these so-called new gains' will NOT be made a day after the earnings report, but only more gradually when buyer/sellers are on an even keel and profit taking has dwindled. I held SWY through earnings and actually lost 2 points. The report was excellent and the stock did go on to reach new highs, but it took longer than 2 days.
. I was not fearful holding VRTS, TLAB, or some others through earnings because they were already scalped pretty badly beforehand. A classic stock to hold through earnings would be one that was unjustly maligned, price slashed and earnings report 'renewed' confidence in the companies capability of having good earnings. VRTS and TLAB were of that variety.
I've had CLX 3 times 1 before earnings, not at all through earnings (it was down a tad) and 2 times after earnings. I had CREE through earning as well as SDTI, and USWB, SEEK (a mistake), a Relative Strength is also important. There are always the stocks that seem to defy logic.
And you don't 'jump right on either' you can wait until profit takers have done selling and get in at the 'first' bounce after that. Stocks like XEIKY, QCOM even though they had their problems on report dates will always come back for more and more gains. When everyone was 'crying' how awful this earnngs season would be, I think I was the only voice on SI that mentioned that this happens each and every quarter, some worse than others, but there are always a nice amount of stocks that beat estimates and otherwise show that growth has not stopped or slowed to a crawl.. I was already chosing my best bets while the analysts on CNBC were 'crying the blues' for the quarter. When I heard them say weeks later 'hey, it wasn't so bad after all, I had to smile'... |
