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


To: Dave Shares who wrote (4784)1/16/1998 8:17:00 AM
From: Jenna  Respond to of 120523
 
In your previous post, you said not to play before, but to play during or after
You can of course play BEFORE, but I would not advise to take home the companies that have 'rumour' associating it to a future warning (i.e. PWAV), or too much visibility in Asia (i.e. PWAV). I have taken home 'safe stocks'.: like ABS, BOW, SEBL GLM and AHM, COF and even SUNW .. but have not taken home tech sector stocks for the most part. So when I say NOT to play BEFORE what I really mean is not to take them home the night before. I used to do that and enjoyed the subsequent gap up, but that was in the prior 3 quarters and changes in the market necessitate changes in strategy.

There are companies like DURA or THRX that have run up before earnings and even a good report can result in a "downgrade" when earnings finally come out. BUY on the rumour, sell on the NEWS theory which is what I purport to do. An example would be playing DURA the past few days but selling right before earnings come out. Thereby limiting your possible losses.. If DURA surprises, and most likely it will, wait a few days and you will be able to get back in.