Apple and Amazon really blew EPS estimates and the stocks went crazy. How can I come up with a way of making high returns by purchasing (or short selling) stocks announcing earnings in the near future?
2007-04-26 08:24:38 · 3 answers · asked by mukwonago53149 5 in Business & Finance ➔ Investing
hey people - look at aapl and amzn. those stocks had earnings surprises....so i figured hey...msft is announcing today...and i bought some. Boom! That's a 4% gain right there. I'm just trying to figure out who will have a good surprise...obviously you can't know with 100% certainty...but I want some clues
2007-04-26 16:45:18 · update #1
No way to predict the market, unless you work for one of these companies and you know ahead of time when certain big announcements are going to happen (which is illegal for you buy stocks if you know ahead of time that the price will increase...called insider trading). Mathematicians have been trying to do this for years. The market is so complex that no one-method will be able to predict which will go up or down.
2007-04-26 08:49:59 · answer #1 · answered by chemicalcajun 4 · 0⤊ 0⤋
Really there is no real 100% way. I watch the stocks, and watch institutional purchasing of the stocks.. If big money is into a stock, there is a good chance it will be moving up.
There are sites like www.whispernumber.com that may give you an idea if analyst are more bullish on what they expect to see from the stock, versus what is out there in the open. Apple should not have been a big surprise, as cost of making the Ipods was going down, they had high demand for the Mac's... I felt that the number on the street was low for the company for sure. But, I admit that was a gut feeling. What I use more than anything else is Technical Analysis, the stock can tell you if it is going up or down based on the chart, and certain indicators. But if you break it down into the basics.. Price and Volume.. With Price and Volume you can see how much emotion is in the stock. The more emotion the more likely it will continue in the direction it has been going. If down, then down she goes, if up.. well you get the idea..
If you do come up with a good way, sell it.. :)
Until then good luck with investing.. and may we see DOW 14000 soon.. Hmmm.. Maybe even NAS 5000 again..(ducks)
2007-04-26 08:56:49 · answer #2 · answered by rfrstormer 2 · 1⤊ 0⤋
What is the definition of "surprise"?
What makes you think anyone has a simple answer to when a stock will jump in price? If they did, why would they tell you?
Please start reading some books on investing. The best way to make money on Wall Street is with knowledge and hard work.
2007-04-26 16:24:46 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋