Would anyone recommend buying into a stock right when news agencies release news of explosive earnings? I typically get my news from Business Wire, and it will be the first to report earnings for a company (usually in premarket).. For most stocks in the past, if explosive earnings are reported, it will skyrocket by the morning session... so is it possible to buy into the stock right when the report is released and make a good profit by selling it later in the day? or is there more B.S. involved that makes things more complicated?
thanks!
2007-02-20 09:41:44 · 5 answers · asked by rk88 1 in Business & Finance ➔ Investing
Without knowing the industry and the company I wouldn't recommend buying based on super positive news. By the time it has made it to the mass media people have already bought it 'low' and are ready to 'sell' when the rest of the market gets wind of these 'explosive' earnings report.
They make their money on the upward volatility, not buy and hold.
They watch the investment or may have an automatic sell order in to lock in the profits.
Even with IPO's its the insiders that make the money....The johnny come latelys get to pull out the chairs and pay the check.
2007-02-20 10:06:06 · answer #1 · answered by Ronatnyu 7 · 0⤊ 0⤋
YES & YES: Yes this stratergy will work, and there is more B.S. involved. If it was clear and simple, everybody would be doing it.
You can not make money buying into the market. All money is made (unless you short Sell) by selling. You may see a good time to get in, but miss the time to get out.
I once bought a stock for $2.00, It went to $11.25. I told my broker to sell, my broker told me to hold. I said, "with 525% return why should I be greedy". Two weeks the stock was at $13.45 - and 30 days later at $6.25.
Knowing when to get out is a hard lesson to learn.
2007-02-20 09:53:52 · answer #2 · answered by whatevit 5 · 0⤊ 0⤋
I would think it unlikely that you could scoop the market. the sellers will want full price for their shares and if a lot of people want to buy, the bid will be high at the opening and maybe even drop by afternoon.
I think there are better ways to invest
2007-02-20 09:52:56 · answer #3 · answered by bob shark 7 · 0⤊ 0⤋
specific.... and no. Pre marketplace is often much less liquid than prevalent procuring and merchandising hours. So the fast answer is... at times shares drop from pre-marketplace.... at times they do no longer. Many investors won't commerce for the 1st half-hour of the traditional procuring and merchandising day.... actually some do no longer in the process the 1st hour... they call it "newbie hour".
2016-10-02 11:22:09 · answer #4 · answered by ? 4 · 0⤊ 0⤋
A recipe for disaster.
2007-02-20 14:30:27 · answer #5 · answered by Anonymous · 0⤊ 1⤋