As you guys know, I asked a week ago if you know where I can find a website that provides a detail list of public companies financial earning releases dates. I also posted yesterday that I found a site that provided that list one week ahead of reporting of financial results. The reason I asked this list was because I was thinking of an experiment that would take advantage of significant surge/decline in the price of a stock market when companies release their financial results.
I am sure a lot of people in the financial industry do this, but since I am new to this, I have to experiment with it, and see if I am successful in using the volatility of the stock market when financial reports are released to my advantage. I wrote down the list of financial companies that are going to release their 4th quarter earnings report on February 28. I added all the companies to a new portfolio in my Google finance. This way, I will track how each company does from today to two days after the financial reports of public corporations are released.
The first phase of the experiment is basically to observe the changes in stock price of individual corporations. I am not going to make any assumptions on the financial prospects of the company. The first phase of Stock Market is just observation - how much or how low a company's stock price moves after financial data is released. After that phase is complete, my next phase would be to look into key financial statistics of individual companies that are going to release their financial data next week. I am going to check their previous quarterly earnings, future outlook of the company as said by the CEO, financial analyst estimates of company's earnings for the next quarter i.e. this quarter, how the overall industry is performing, and how the company's competitors did - did they grab more market share, etc. Armed with this data, I am going to pick stocks that I think are going to deliver positive results and stocks that are going to do poor. I will pick 100 shares of each company and add it to a new portfolio in Google Finance. A week later we will see how each company performed, and how my good / bad my picks were. This experiment will give me a good idea on what stocks to pick and what stocks to avoid. I will continue this phase of experiments for a month to see if I am delivering results. If I am consistently pickings stocks that performed well after delivering their financial reports, I am thinking of moving into buying stocks in the real market.
Since the first phase is just observation, I am going to list the stocks that I will be observing for the week. The stocks are :
Live Nation
The First American
Dycom Industries, Inc
NCI Building Systems
Human Genome Sciences
Boralex - March 1, 2007
MSC.Software
Nabi Biopharmaceuticals - March 12, 2007
Specialty Underwriters' Alliance, Inc. - FEB, 28
Alpharma
Sun Communities, Inc. March 15
Ambassadors InternationaL, Inc
BMO Financial Group March 1, 2007
Versant
Limited Brands
Tecumseh Products Company
Iconix Brand Group - March 6, 2007
Eaton Vance Corp.
Centerplate
Perma-Fix Environmental Services, Inc.
International Royalty Corporation
PXP
OmniVision
Parker Drilling
PeopleSupport March 8
You will see that some companies have a date lister after them, these are companies that are going to be releasing their financial reports at a later date. I will be observing these corporations nonetheless. Most of the companies listed above will release their financial reports on February 28.
I hope you guys follow my experiment, and hopefully learn a thing or two, and also give me some pointers along the way.
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