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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: Jenna who wrote (10133)6/9/1998 1:12:00 AM
From: Jenna  Read Replies (2) | Respond to of 120523
 
New elements I'm adding to the earnings plays analysis this quarter

I am taking a much deeper look on "NEWS" and how particular news will influence even companies with high fundamentals and good charts:

a) What are the products that are sold.. How much of the market do they control.. What is competition like for the company. How diverse are their lines? Are they diversifying all over the place? Too much is not good either.. Can they pay their debts? etc. etc.. You can't get the whole story from pure Technical Analysis or even from Fundamental Analysis..

b) How many acquisitions are they making? What kind of contracts are they signing? Are there any law suits pending?...

c) What is their exposture to Asia.. That should probably have been first on the list.

Case in point: When I was researching for APOL just Sunday for my earnings plays list I came across an old battered favorite, CLCX.. Some of you might remember my bullishness on this stock last year (it gave 10 points in about 4 days). Upon looking at it carefully I decided this one had enough and would make an excellent comeback in the next few weeks.. Well it did today it was up over 3 points. So you see NEWS killed it.. no amount of TA/FA could have saved it.

So for the next 7 weeks or so, NEWS will be another criteria in determining what stocks will go on the watchlist and especially what will consequently become a buy.