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To: Cooters who wrote (18482)1/24/2001 6:41:43 PM
From: Road Walker  Respond to of 60323
 
Cooters,

re: "In fact, I am going to the bar. See everyone tomorrow."

Good idea...

John



To: Cooters who wrote (18482)1/24/2001 6:48:35 PM
From: Dave Gore  Respond to of 60323
 
Cooters, I have been there but have learned a couple things over the years and one is that if you want to maximize profits, it is generally a good idea to sell on any upswing in price (something Jenna and others call the "Anticipatory Upswing") that often occur a day or two prior to (or even minutes before) the close of trading of the day of earnings.

If a stock has already run up significantly in a short time prior to earnings (i.e. SNDK had run up some 60%+ from lows in Dec.), then the possibility of a fall on anything but the most glowing outlook is far more possible.
If SNDK was still near lows, then expectations would have been lower. I bought SNDK near $28 and sold way early, but I had the right idea. Buy stocks when they are low and be wary of what can happen after earnings.

The problem with this Market is sometimes we don't even how a stock will react no matter what the earnings or guidance is. This makes holding through earnings nothing but a gamble. We have seen INTC go up on bad news and we have seen others go down on good news. So the best thing (unless you are absolutely a long term investor) is to not hold stocks at all through earnings until you see how the analysts will react the next day or two. Their reaction often determine the trading range over the next few days or even few months.

I have avoided a lot of stress by following that model and often make nice money by buying a stock when it is cheap(er) a few days or weeks prior to a highly anticipated earnings report.

Just my 2 cents.