posted
just saw news about 4q 2005 financial report do you think it is going to efect srtocks ? how much im holding them for over a month but no movment what so ever
IP: Logged |
posted
A quick glance at the report I would be skeptical about staying in it long term. They are losing money, cost is increasing q over q O/S and float are 380million plus. A number of 8-K's which usually lead to dillution.
A very easy rule of thumb for a newby is check the timing of PR's/financials. If you don't understand what the financials are saying you should learn but also understand why they released it when they did. If it's released Saturday at 9am do you really think the company wants investors to see it? Why not release it during market hours or before open on a weekday?
Good news is it looks like they usually put a new PR out the day after they release the quarterly to change the subject. That is a common tactic after a poor quarterly. You may look to sell if there's a rise in PPS when the PR hits Monday.
When I played stocks for a month or so at a time I always got burned on release of financial reports. So I switched tactics and used a strategy that worked for me: Pull out of every stock before the quarterly hits and buy back in after the dip. Maybe it was just coincidental to the stocks I was in but it worked for me.
Most of the times stocks in OB rise on rumors and fluff but tank when push comes to shove and they have to report the truth. And remember financial reports are sent to the SEC and are the truth. Most other stuff is BS or wishful thinking. Even when financial reports where good the news seemd to be already baked into the PPS and people would sell the news.
I do want to say that I know little about your particular stock so it could be an exception. I was just speaking generally.
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
