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rjm77me
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rjm77me's Blog : Make money Lesson #2 Guess what else is important beside earning beat?

Date February 13, 2010  Edited: February 21, 2010    Comments Comments (3)    Rate this post Recommend This Post (80)   
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Feb 21 update - The second most important besudes beating earning estimates is raising guidance for next quarter / Year. There are other factors like short interest and market sentiments also play in enhancing the move.

There is another element to beating the earning numbers
If you guess it right, I will send you the list of 4 stocks on my earning beater list.
You can look at the four stocks mentioned in this blog for the clues
a, hgr, cgnx, bdc
The answer will be posted next Saturday. I will also add opinion as received and add to my opinion. I will need you e-mail if you need 4 stocks on my earning beater list for next 2 weeks.

Please recommend the post if you want me to post similar type blogs.

I like folks to participate and add to knowledge base for every trader. There is really no cut and dry answers to complex markets.
Tags : A   HGR   CGNX   BDC  

3 Comment(s):

Author InvestmentMAGE     Date February 13, 2010 15:40  Edited: February 13, 2010 by InvestmentMAGE Abuse this post Report Abuse
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Hello rjm77me,

You ask a very interesting question. I would have to say "future guidance".

Beating earnings is nice but is totally undone if future guidance is lowered or outlook is weak. Often we have seen a stock beat earnings, and then drop on future guidance.


MAGE

“The race is not always to the swift, nor the battle to the strong, but that's the way to bet.”

Damon Runyon
Author Burtman     Date February 14, 2010 06:59 Abuse this post Report Abuse
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I would have to say social mood. What is the social mood of the overall market? Then, what is the social mood of the stock? Ever wonder why the market or a stock drops on good news? It's all in the technical analysis.

Burt
Author JoeCole     Date February 14, 2010 17:49  Edited: February 14, 2010 by JoeCole Abuse this post Report Abuse
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I think MAGE is right, but you also have to look at sales/revs (the top line). If a growth company is not growing sales, sometimes the market fears it won't make future earnings expectations (the bottom line). It may be preferred to grow sales at a lower margin in order to gain market share.

Joe
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