The earnings season is just starting and that offers an opportunity to find some big multi month, multi quarter, or multi year moves. For the Working People Portfolio I look for growth stock just starting their move.
If you want to profit from the earnings trade, during this earnings season become an extremist
Look for extreme earnings growth (just starting out to grow). Look for first major earnings acceleration.
Look for extreme sales growth (just starting out and of magnitude likely to make the company a billion dollar company in a year). If that happens stock price explodes.
Look for extreme price strength ( just starting young trend with explosive first leg). Look for stock up 80% plus from their 52 week low and find out why they are going up. There must be some catalyst.
Look for extreme neglect (multi year , low float, low volume, no analyst, low number of funds ownership). Neglect+surprise= big move
Look for extreme earnings growth (just starting out to grow). Look for first major earnings acceleration.
Look for extreme sales growth (just starting out and of magnitude likely to make the company a billion dollar company in a year). If that happens stock price explodes.
Look for extreme price strength ( just starting young trend with explosive first leg). Look for stock up 80% plus from their 52 week low and find out why they are going up. There must be some catalyst.
Look for extreme neglect (multi year , low float, low volume, no analyst, low number of funds ownership). Neglect+surprise= big move
You have to be first to find them as early as possible and not when everyone knows about it… . Find growth as it just starts.
That is where big opportunity is in earnings season….
For that in process term look at every stock up 5% plus on with high volume on earnings day and ask yourself these questions:
is this a game changing earnings
is this first or second major earnings acceleration
is this earnings right at the beginning of a new trend for this stock
is this earnings growth likely to continue for 2 to 3 quarters
You do not need to be analyst to do it. Just use simple public knowledge to make these decisions.
You can use free sites like Finviz to do this.
The key is to develop a process for doing this daily during earnings season.
2 or3 good earnings idea in a quarter can do wonders for your returns.
is this a game changing earnings
is this first or second major earnings acceleration
is this earnings right at the beginning of a new trend for this stock
is this earnings growth likely to continue for 2 to 3 quarters
You do not need to be analyst to do it. Just use simple public knowledge to make these decisions.
You can use free sites like Finviz to do this.
The key is to develop a process for doing this daily during earnings season.
2 or3 good earnings idea in a quarter can do wonders for your returns.
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