Tuesday, January 14, 2014

Intel Corporation (INTC) and 5 Other Stocks That Could Pop on Earnings This Week

As a much younger man, I can remember watching ABC's Wide World of Sports on TV. The Saturday afternoon sports variety show opened with one of the most famous taglines of all, "The thrill of victory and the agony of defeat."

Who can forget the skier wiping out to illustrate agony?

Investors know their won thrills and agony, it's called quarterly earnings. We've all felt the sheer rush of a stock jumping on positive results and, unfortunately, shared the skier's pain, actual physical pain when a holding tanks for disappointing Wall Street. If we don't shout it, we think things like  *#$%^ as a penny miss chops a stock by a third -Dramamine comes in handy.

The purpose of this article is to try and identify stocks that are reporting in the week ahead with a bullish history of price sensitivity. First, the ground rules for selection.

We have to have a confirmed EPS release date. The company is expected to turn a profit Average daily volume is in excess of 750,000 shares At least 10 of the previous 16 EPS announcements pushed shares higher in price Finally, investing $10,000 in each of the last 16 – good and bad – delivered a positive ROI

[Related -Intel Corporation (INTC) Q4 Earnings Preview: Room To Pop On EPS]

The last qualification might need some additional explanation so here it is. In this case, we are defining return-on-investment (ROI) as a $10,000 invested into the company three days before reporting earnings for each of the last 16 announcements. That's 16 separate $10,000 buys.

[Related -Montage Technology Group Ltd ((NASDAQ:MONT): A Strong Growth Stock With Discounted Valuation]

We sell three days after the announcement and determine the profits/losses for all 16 trades. If the sum is greater than zero, then the strategy has a positive ROI. Now, you might be wonder, how can a stock go up 10 times and be down or flat six times and lose money?

Well, that's exactly what Goldman Sachs Group Inc (NYSE:GS) accomplished. Trading $10k in each of the last 16 GS earnings announcements would have cost you $660.

Hopefully that clears up the picture. Without more virtual ink, here are the six companies reporting this week that meet all of the above criteria. (listed in order of report date.)

Kinder Morgan Energy Partners LP (NYSE:KMP) reports on 1/15/2014 and its stock price has moved higher 13 of the last 16 earnings announcement with a cumulative return of $3,490.

Associated Banc Corp (NASDAQ:ASBC) reports on 1/16/2014 and its stock price has moved higher 10 of the last 16 earnings announcement with a cumulative return of $3,150.

Intel Corporation (NASDAQ:INTC) reports on 1/16/2014 and its stock price has moved higher 11 of the last 16 earnings announcement with a cumulative return of $3.280.

Skyworks Solutions Inc (NASDAQ:SWKS) reports on 1/16/2014 and its stock price has moved higher 13 of the last 16 earnings announcement with a cumulative return of $11,070.

Top 5 Warren Buffett Companies To Buy Right Now

Morgan Stanley (NYSE:MS) reports on 1/17/2014 and its stock price has moved higher 10 of the last 16 earnings announcement with a cumulative return of $4,210.

Schlumberger Limited (NYSE:SLB) reports on 1/17/2014 and its stock price has moved higher 11 of the last 16 earnings announcement with a cumulative return of $4,890.

If history holds form, then four of the six should rise on their quarterly results and make a total profit of $700-$1,100, which isn't too bad for a couple of days work. 

No comments:

Post a Comment