Re: [CANSLIM] How does Earnings Release affect short term stock price?

From: michael_niemotka@baxter.com
Subject: Re: [CANSLIM] How does Earnings Release affect short term stock price?
Date: Wed, 30 Apr 2003 14:55:07 -0500

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Chris,

I have seen everything happen, and it always seems to define reason.  I
happen to have bought GRMN a couple of weeks ago, so am happy to see
today's progress, but I have seen other companies announce good earnings
report for the quarter, but because they do not expand the full year
outlook, the stock gets hit.  Or a company could miss the current quarter,
but announce that they will not downgrade full year projections, and the
stock will rise.....

I will be curious to see what other have to say on the matter, and in fact,
there is a website that uses earnings announcements to predict future
performance, I think it is called earningswhispers.com.

Mike


Mike Niemotka , PE
Sr. Principal Engineer
Baxter Healthcare Corporation
Route 120 & Wilson Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) 270-4525
michael_niemotka@baxter.com


                                                                                                                            
                    "Chris Jones"                                                                                           
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Hi All -

As I watch GRMN gain $3+ on 400% ADV because of an excellent earnings
release, I began to wonder if there is any general trend/rule to this.
When a company releases excellent earnings, (correct me if I'm wrong), it
seems that the stock usually goes up considerably.  What usually happens
after the first big day of earnings?  Does a typical pullback occur?  Or do
institutions suddenly see it as a buying opportunity, because of the great
earnings, and then propel the stock higher?  Is there any general trend (or
examples) of how earnings release may affect the stock price beyond the
first big day?

Thanks!

Chris





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