Re: [CANSLIM] PPDI Prevailing Wisdom on Earnings Announcment

From: "Boyd" <theboyd@tisd.net>
Subject: Re: [CANSLIM] PPDI Prevailing Wisdom on Earnings Announcment
Date: Wed, 27 Mar 2002 20:54:56 GMT
Next Article (by Author): Re: [CANSLIM] PPDI Prevailing Wisdom on Earnings Announcment Davellil5@aol.com
Top of Thread: Re: [CANSLIM] PPDI Prevailing Wisdom on Earnings Announcment "Katherine Malm"
Articles sorted by: [Date] [Author] [Subject]
Katherine, Patrick:

I can, unfortunately, shed light on the CMTN fiasco.  I think they were one
of the first of the CLECs (or some similar acronym) to fall prey to an
analyst who uncovered that the CLECs were losing customers to the bad
ecomnomy.  This was released after they had decended from their top but it
accelerated their demise.  Shortly after they crashed so did others of
their guild.  And of course the law suites came snow-balling afterwards.  I
can't remember too many details (or maybe subconciously I just don't want
to).  It was a bad time early in my investing "career" :-(

Norm


Katherine Malm writes:

> Patrick...I was completely with you until you mentioned CMTN....could it be that slide was coincident with the market top? I'd have to look back at a chart, but I think it was well into a blow-off top at the time and probably had very little to do with an earnings announcement or anything else!
> 
> Katherine
>   ----- Original Message ----- 
>   From: Patrick Wahl 
>   To: canslim@lists.xmission.com 
>   Sent: Wednesday, March 27, 2002 2:19 PM
>   Subject: Re: [CANSLIM] PPDI Prevailing Wisdom on Earnings Announcment
> 
> 
>   Buying ahead of earnings was discussed sometime last year, I think.  It is not 
>   discussed anywhere that I know of by WON, but it does make sense that you don't 
>   make a new commitment to a stock only a few days before an earnings 
>   announcement.  Almost certainly you will have only a small gain if you are just into 
>   a stock and earnings can really thrash the smaller Canslim type stock, so I think you 
>   are taking on more risk when you buy too close to an earnings release.  As far as 
>   institutions soaking up a stock, fine, but if you are trying to keep losses manageable, 
>   you may be out on a short term hit before the stock can stabilize.   If you have held 
>   a stock for a while and have a gain, you an afford to sit through the earnings and 
>   hope it's a favorable surprise or at least status quo.
> 
>   I'm even a little suspicious of a stock that breaks out just ahead of the earnings 
>   release, seems to have a bit of the speculative flavor to it and be prone to failing.  
>   Anecdotally speaking, Copper Mountain hit its all time high about two days before 
>   an earnings release, and then it was all down hill from there, about 100 dollars 
>   down.  I remember because I was very tempted to jump in, but fortunately 
>   something held me back,  I think it was a little fear about buying ahead of the 
>   earnings release.
> 
> 
> 
> 
>   On 27 Mar 2002 at 13:39, Katherine Malm wrote:
> 
>   > Tim,
>   > 
>   > See what you mean. The Bear has certainly bred a
>   > short-term-smoke-em-while-you've-got-em mentality into the market.
>   > Still think that the majority of institutional monies are committed to
>   > longer term views, so ultimately a strong stock will overcome that
>   > short term profit taking as institutions soak up the pullback. 
>   > 
> 
>   > Katherine
>   >   ----- Original Message ----- 
>   >   From: Tim Fisher 
>   >   To: canslim@lists.xmission.com 
>   >   Sent: Wednesday, March 27, 2002 1:26 PM
>   >   Subject: Re: [CANSLIM] PPDI Prevailing Wisdom on Earnings Announcment
>   > 
>   > 
>   >   Nope, you didn't. It's a part of MY CANSLIM approach, has been discussed B4 
>   >   on this list, I forget where it was first referenced, assumed it was 
>   >   HTMMIS, but was obviously mistaken. Maybe was from HGS. Anyway too many 
>   >   short termers buy 2-3 wks B4 and sell the second after the announcement.
>   > 
>   >   At 01:03 PM 3/27/2002 -0600, you wrote:
>   >   >Tim, I didn't see this mentioned in the 'buy rules', did I overlook it?
>   >   >
>   >   >Gene
>   >   >Not buying right before an earnings announcement is part of CANSLIM, however.
>   > 
>   >   Tim Fisher
>   >   Ore-ROCK-On Rockhounding Web Site
>   >   Owner, Fisher Fisheries, Ltd.
>   >   mailto:tim@OreRockOn.com
>   >   WWW http://OreRockOn.com
>   > 
>   > 
>   >   -
>   >   -To subscribe/unsubscribe, email "majordomo@xmission.com"
>   >   -In the email body, write "subscribe canslim" or
>   >   -"unsubscribe canslim".  Do not use quotes in your email.
>   > 
> 
> 
> 
>   -
>   -To subscribe/unsubscribe, email "majordomo@xmission.com"
>   -In the email body, write "subscribe canslim" or
>   -"unsubscribe canslim".  Do not use quotes in your email.

- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.
Go to Jeff Salisbury LWGate Home Page.