Earnings breakouts offer opportunities in bearish environment

Earnings breakouts offer opportunities in bearish environment

February 11, 2010

Market is churning at this level. In such environment some news drives opportunities exist. Earnings season is on so obviously earnings breakouts is what I am focused on.

Example of earnings trade:
OPEN had a nice earnings surprise and had months of neglect so it was obvious candidate for earnings breakout. It also had very high short interest .

OPEN: Opentable Inc

14 High Volume Movers

Symbol	Sector rank	EPS %	Sales %	Float	p/s relative rank	prior neglect	Episodic Pivots
BIDU	100	44	40	20	96	no	Beats analyst estimate and guides higher At all time high. Not dented by correction in market
AMG	146	31	10	41	80		Raises earnings forecast Acquires fund of fund manger Pantheon
NTGR	81	586	36	33	50	some of the last few weeks weakness is due  to overall market Otherwise this was rallying in to earnings	Beats analyst estimate and guides higher
OPEN	149	1500	32	18	93	neglected since IPO	Beats analyst estimate and guides higher Analyst upgrade Recent IPO Number of funds owning stock up to 51 from 36 in 3 quarters Short interest is 11% of float. Relatively small float. This was obvious buy today. I bought this before market open. This is a good example of what to look for in  a earnings breakout.
FNSR	56	-31	-1	63	52		Beats analyst estimate
ATHX	66	25	-63	18	97		Granted US patent for stem cell therapy
ID	52	92	12	82	46		Misses earnings and guides inline Exploring strategic options
NFP	183	6	-7	41	20		Beats analyst estimate
RUTH	15	-300	-21	23	9		Completes right offer. Sector in top 20
LIOX	48	1100	-14	53	18		Beats analyst estimate
DSCM	188	33	25	96	36		Beats analyst estimate and guides higher
MERC	13	14	-12	28	7		Post earnings breakout
APPA	66	80	1767	30	98		No news
ONCY	66	50	0	38			no news