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: Dave Shares who wrote (4837)	1/19/1998 1:13:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

RookieDave..>>least at the 75% level of its day range and was up for the day--- is this for a company which is going to report before the bell the following day, or for a company that is reporting after the bell on this day, or both, or neither>> That is inconsequential.. the time of the day they report is only a technicality.. (.example: BJS is supposed to report the 20th. I don't even KNOW if it's before or after the bell.. I bought it on Friday when it was trending upward.. It was up 1 3/4 when I bought it this was the high of the day at that time... BJS closed +3 which was the very nar the high of the day. If BJS reports in the morning before the bell, and it's a good report then I have a choice to sell at the open or wait till the stock downturns or even hold until next day when other oils are reporting and that will take the stock higher yet. <<Generally speaking, when a company is going to announce BEFORE the bell, and good earnings are expected, is the best time to play the stock the day before or the day of the earnings report or the day after.>> Well again you will lose the gap up if you buy the day after the report.You can't play the day of the earnings if they report before the market opens,that's like buying the day after... Your best bet is to buy the day before... the risk is higher but the rewards are much higher if you have investigated the company... Better yet is to buy after the stock has run up and pulled back.. usually when it bounces off it's 7 day moving average.. that way is the safest. All this is not easily explained however, earnings reports are very capricious animals and they are influenced by the trend the market is taking on the day of the report. I've seen companies (LEH) that gap up on reports end down for the day, pulled down by the downward momentum of the rest of the market. I've seen companies with great reports go nowhere (PKD) the DAY the report came out.. PKD had a delayed reaction and didn't start rising until the following day. Same is true for upgrades to "strong buy".. and sometimes "buy". When a company is upgraded to a "strong buy" on a negative day it might not influence it's movement. (i.e. ACK was upgraded to "strong buy" last week, the day the market was down over 93 points, and it went nowhere) I bought in at 70 1/2 and waited until the next two days till I sold it at 72 3/16. There are no real guidelines to buying a stock for earnings report. It's hazardous especially in the technology sector. I would wait for a real feel for the company and the market before I do it.. I've played most of these companies for their third earnings quarter, and I'm just now getting comfortable with these plays. It takes months unless you have a 'pet' company that you've been following and watching for a long while.