Sunday, April 1, 2007

Case Study # 2


I will use Best Buy (BBY) for my next study on earnings. The company reports Wednesday morning, and I'm looking to pick some up tomorrow.

The chart displays an ascending triangle, with buyers being more eager than sellers.





2006 3/29/2006 55.38 54.52 -0.86
(Q4) 3/28/2006 55.05 55.16 0.11





-0.97%
(Q1) 6/12/2006 50.5 49.03 -1.47

6/9/2006 50.16 50.39 0.23





-2.30%
(Q2) 9/11/2006 46.45 47.77 1.32

9/7/2006 45.1 46.31 1.21





5.59%
(Q3)
53.5 53.92 0.42


52.45 53.13 0.68





2.73%







  • Looking at last year's historical data there is a 50/50 chance that you will make money buying the stock two days before the report. I did notice that the 2nd day before earnings always produced a gain (highlighted in blue). If statistical history provides any forecast to future events, the best time to buy Best Buy would be at the open tomorrow and sell at the close.



















































































1 comment:

mdawsz said...

Nice Ragin! I am rooting for you here. I love gaming earnings and done right it can be a winning strategy. I'm looking forward to more in this series.