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Dear fellow investor, It is not hard to make significant gains around a company's earnings release as long as you know when to buy, short, or stay on the sideline. There are just two simple, but powerful, steps needed to make this decision.
For example, last Wednesday we presented the following chart for Plexus (PLXS) and pointed out that despite earnings estimates increasing 10% during the quarter, the stock was basically unchanged, but we expected the company to beat estimates and raise guidance which should push the stock up to $31 - an 18% gain. We were off, the stock reached a high of $32.47 on Thursday, November 1, 2007 for a 25.8% gain - and that was on a day where the Dow Jones Industrial Average was down 363 points. In addition, earlier in the month we pointed out the expectations for Sierra Wireless (SWIR) to beat the consensus estimates and to raise guidance after the market's close on Thursday, October 25, 2007. We also pointed out that even though the stock has typically traded at 36 times forward earnings estimates and the company was expected to grow earnings by 26% per year over the next few years, the stock was trading at just 16 times forward estimates - suggesting expectations for an upside surprise and upside potential in the stock. Still, on Tuesday, October 23, 2007 - two days before the earnings release - we pointed out a lot of call buying and unusual call pricing, which provided additional support for a positive price reaction to its earnings release. We also provided the following chart pointing out the double bottom that had formed suggesting the stock should rally back near its recent high of $28 on positive news - for a nice 35% gain. Or take this chart for NETGEAR (NTGR) that we provided to subscribers on Thursday, October 25, 2007 before its earnings release. Notice the blue trend line and the decline below the trend line after the company's earnings release in July. We pointed out comments from an analyst following the company that said the issues in July were simply due to an order not being booked on time and was likely corrected in the September quarter. He said he believed the earnings release would be a catalyst for the stock and we indicated the likelihood this meant the stock would eventually make it back above the trend line for a gain of approximately 18%. Both of those company's beat expectations on Thursday, October 25, 2007 and their stocks rallied accordingly. Click Here to Get Today's Trades BEFORE the Move! But that's not all... you'll also get:
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