Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: ROBERT I. SCOTT who wrote (4200)	12/7/1997 9:22:00 AM
From: Jenna	Read Replies (1) \| Respond to of 120523

December 8/12 watch list+ Barron's article entitled Trigger Happy ....Merrill Lynch poll sheds light on the vicious punishment that usually follows earnings disappointments. Have you ever wondered what prompts Wall Street's big boys to pull their vbillionss out of one stock and put them into another? Well, now you have the answer, or rather, a series of answers, thanks to the latest annual poll of Merrill Lynch's institutional clients. While the average investor might select blue-chip companies that boast familiar products, strong balance sheets and secure dividends, institutions shun such straightforward results. Amond the 122 outfits that responded to Merrill's poll, the top strategy was buying stocks of companies that had just delivered higher than expected earnings and selling those whose earnings had fallen short. On Wall Street, these occurences are known as "earnings surprises". As the accompanying tabl shows, this strategy layed a role in the stock selections of 54% of the institutions: WHAT THE PROS WATCH: 54.1% Earnings Surprise 50.8% Return on Equity 48.45% Analysts earnings revisions 48.45% Price-to-cash flow ratio 45.9% Projected five year profit growth 43.4% Debt-to Equity ratio 41.0% Earnings momentum 38.5% Relative Strength 34.4% Price to earnings ratio 33.6% Price to book ratio 33.6% Analysts' opinion changes 31.1% Earnings variability 27.9% Price to sales ratio December 8: AZO, STBI, BLDG, TEC, December 9: TOL, VTS, MICA December 10: ROBN, SKO, CIEN (ran up before earnings watch this one) December 11: PBYP, PIR December 12: OCLI** best bet *pick of the week