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Recently I have done a bit more research in how to maximize my profits on $$$MR. MARKET$$$ stocks, although actually it is more of a way to protect myself from unrealized losses. Basically the only option that I am seriously looking at is selling any stock I hold before its earnings report. Why would I want to do such a thing, you ask? Well, lets take HELE as an example. Obviously this is a good company, but lets look at its performance since I bought it.
I bought HELE on 9/19, at 25.00/share. It continued its nice run up to the 27.00 range, and then we had the earning CC. While the hit earnings, they missed on revenue by .01. Anyway, the reasons are not important, but what is, is the fact that the report was seen as slightly negative by the street, and HELE fell off to the 20.00 range. Now, had I sold before the earnings CC, I would have had a nice gain, although not 15%. Had the report been good, the price momentum would have continued, and I could have abruptly bought back in, and finished off the ride, albeit to a slightly higher target than before.
Now this may not be a good idea for stocks that are driven by constant PRs and news, but for one like HELE, or recently CCBI and my latest, GI, stocks that are driven by their quarterly earnings reports, this may be a good way to avoid having to hold a stock an extra 3+ months waiting on earnings. Basically stocks that are volitile and jump around alot, such as UTSI, you would not need to do this with.
Basically I am trying to protect capital while not trying to time the market, or anything of that nature. Any comments?
Sorry if this jumps around a bit, but I had to type a sentence here or there in between calls. Doh!
-Dave
P.S. On a good note, HELE seems to be ready to make a run back up to our original buy-in price before earnings. Sweet!
I bought HELE on 9/19, at 25.00/share. It continued its nice run up to the 27.00 range, and then we had the earning CC. While the hit earnings, they missed on revenue by .01. Anyway, the reasons are not important, but what is, is the fact that the report was seen as slightly negative by the street, and HELE fell off to the 20.00 range. Now, had I sold before the earnings CC, I would have had a nice gain, although not 15%. Had the report been good, the price momentum would have continued, and I could have abruptly bought back in, and finished off the ride, albeit to a slightly higher target than before.
Now this may not be a good idea for stocks that are driven by constant PRs and news, but for one like HELE, or recently CCBI and my latest, GI, stocks that are driven by their quarterly earnings reports, this may be a good way to avoid having to hold a stock an extra 3+ months waiting on earnings. Basically stocks that are volitile and jump around alot, such as UTSI, you would not need to do this with.
Basically I am trying to protect capital while not trying to time the market, or anything of that nature. Any comments?
Sorry if this jumps around a bit, but I had to type a sentence here or there in between calls. Doh!
-Dave
P.S. On a good note, HELE seems to be ready to make a run back up to our original buy-in price before earnings. Sweet!