Monday, February 20, 2012

Potential Earnings Plays for President's Day Week

Although it was not a tremendous week for earnings plays this past week, there were still a few that made things worthwhile.  I shared some potential earnings plays last Saturday and two of them hit big - DMD and CAB.  I was only able to play DMD (and got in late because I didn't trust my instincts) but was able to trade that for a 14% gain in about five hours.  I'll take that any day of the week. 

What you want to look for in potential earnings plays is a stock that is either neglected or a strong stock that is consolidating its gains.   DMD was an example of the first - a neglected stock that no one was really paying attention to at all.   With a heavy short interest, a good report could send the stock upward and that's what happened Friday.  


CAB is an example of the second - a nice flag was forming here into the earnings report and when the report was released and traders liked the results, the flag was broken to the upside and a big two-day swing was underway.  


Here are some names that based on my ThinkorSwim data report sometime this week.   Please do your own research on these companies and as I have said many times before, I DO NOT BUY THESE BEFORE THE EARNINGS ARE RELEASED.   Perhaps keeping a watchlist of these names and watching them during the pre-market or after-hours session will allow you to catch one or two big movers during the upcoming week.   Good luck.  Other setups and overall market analysis was released on Saturday.

DAKT, TIVO, GTXI, XCO
FNGN, SZYM, AWAY, SMBL
HLX, QIHU, JOBS, VICR
 MANT, SMBL, SKS, CETV
 YNDX, CTRP, IDCC, FSLR
All Charts from TC2000, Courtesy of Worden Brothers, Inc.

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