TRT -Trio-Tech Int'lNow this is a trade I just closed when it spiked up by 1.80 today. I got in to this micro cap on Friday . It had blowout earnings and gapped up, I entered the moment I saw the earnings. I alluded to this stock in my post on Friday.
Noticing some good moves in telecommunication. China related stocks are also on fire. A good earning play is up over 40 % today
Look at the earnings.
Trio-Tech Int'l TRT 6/30/06 9,500.0 61.0% 705.0 1037.1% 0.22 0.02
It had a blowout quarter. Extremely small float and completely neglected stock. That is a potential mix for a blowout move. Every earning season there are plays like this. You have to be very quick in spotting them and getting in. When they move, they really move big time.
My bread and butter play is these kind of earnings plays. The earning season is a season of opportunity and I am looking forward to finding few more plays like these. If you focus on earning season you will find completely neglected companies with great earnings and then the market discovers them and they make significant moves. Over the last 5 years this is one strategy I have mastered and fine tuned in microscopic detail. Bulk of my profit come from such earnings related breakouts.
Another way to find these kind of plays is by using one of the ideas in the book I talked about last week- How Charts Can Help You in the Stock Market by William L. Jiler. The original genesis for this idea came from one of the chapters ( Chapter 6) in the book. While working on developing a scan for it I discovered most of these stocks make these move because of earnings.