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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Carl Worth who wrote (13106)	9/27/2002 8:48:48 PM
From: Dave Gore	Read Replies (1) \| Respond to of 16631

Carl, read my last post if you haven't already. I have never seen a company beat earnings by 10 cents (or 35%) and then have the stock tank 20% (from the AH's level) the very next day, when there was incredibly good news all the way around. Would the stock have been down 50% if they "only" beat by 3 cents? I wonder. LOL! In other words, I agree totally that the chances were that ESST's earnings would eventually drop, but the short interest was so sudden, increasing from 4M to 12M, that I think it was a pre-meditated attack that indicated they were really determined to bring the stock down no matter what. Talk about doing your homework. Well, when margins increased from 22% to over 43% from Y-O-Y levels, what does that tell you? It told me that they weren't channel stuffing and that demand was the highest it had ever been. My question was this: Has anyone EVER seen a stock beat by 30+%, with margins doubling, yet the tanked 20% the day after earnings and tanked by 40% a couple weeks later, yet still beat their numbers the next quarter? I never have. Not in 22 years. That's why this whole incident smelled. If somebody can show me that there's been tons of other tanks like this, then I'd love to hear about it. BTW -- here's the chart: siliconinvestor.com PS---- Don't get me wrong, it was a great stock to trade and make money on later, but there was a lot of people who DID their homework and still got burned initially.