Insider Trading Earnings Calendar - A First Look At
Post Q2 Earnings Insider Buying
Our Insider Trading Earnings Calendar points our
names to watch heading into earnings season and
highlights companies that have seen notable insider
buying since their last quarterly earnings report. It
lists select stocks, in chronological order by their
scheduled earnings date, and outlines recent insider
buying. The goal here is to draw attention to names with
significant recent insider buying, that typically -- but
not always -- followed poor reports last quarter.
On balance, we found that corporate insiders who bought
stock prior to their Q2 results, saw their respective
stocks perform well following their latest quarterly
report. We also found that stocks with corporate insider
buying, which excludes those purchases from large
institutions, also performed particularly well.
Among the 17 stocks we
highlighted, 13 of them had positive post-earnings
moves, averaging a return of 12.6% since their last
report.
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Emerging Growth Stocks
Over the years we've noticed that many growth stock
services may do a good job of tracking leadership during
bull markets, but when a stock begins to top out or the
broad market turns, these other systems tend to keep
investors focused on the top stocks from the just-ended
cycle far longer than they should.
Our emerging growth system is more sensitive to shifts
in leadership by putting the emphasis on current
outperformance and forward-looking indicators, and by
mechanically cutting stocks from the list once they
start to technically underperform. It is purely
quantitative, which completely removes emotion and bias
from the process.
In addition, our system is the only service that
provides the end-to-end analysis needed to stay on top
of this dynamic market segment. Specifically, it
provides: 1) a high quality ranking system, 2)
comprehensive fundamental company reports, 3) detailed
technical set-ups, and 4) frequent intraday spot
analysis. Other growth stock services may provide one or
two of these features, but none of them provide the same
depth of coverage that our system does.
Top performers in 2012 include
QCOR +125%, SIMO +123%, PKT 113%, RGR 110% and many
more.
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The Next Big Thing - IPO Analysis
The Next Big Thing team provides thorough fundamental
analysis of upcoming IPOs and spin-offs, with a
particular emphasis on higher quality deals. Every
Friday we publish a preview of the following week's
IPOs. This report includes detailed fundamental analysis
of what each company does, their growth drivers, and
their anticipated valuations. We then assign an A
through F grade which is based on our own fundamental
opinion.
Once an IPO has begun trading, our team
continues to follow the most compelling names and
publishes periodic updates and reports that highlight
companies and themes that our analysts believe have
significant upside potential. Some recent
performance names include:
- On September 28 we
published a bearish IPO preview on Berry Plastics Group
(BERY), assigning it a low grade of C- and indicated
that it is an IPO to avoid. BERY is currently trading 7%
below its IPO open price.
- On July 13 we provided
bullish IPO previews on Palo Alto Networks (PANW, A-),
Five Below (FIVE, B+), and KAYAK (KYAK, B+). These IPOs
have gained as much as 73%, 111%, and 42%, respectively,
versus their IPO prices.
- On July 3 we
highlighted Nationstar Mortgage (NSM) in our report, "A
High-Growth Mortgage Servicer With Significant
Competitive Advantages." The stock has gained as much as
40% since then.
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Value Leaders
Designed for value investors who want to avoid "value
traps," our weekly rankings are derived from a
proprietary quantitative system that combines multiple
value and yield factors with strong 6-month Relative
Strength. There are no growth, profitability, or market
cap requirements.
Traditional valuation-based investing strategies
generally incorporate just fundamental metrics: low
absolute or relative P/E ratios, high dividend yields,
etc. These strategies can accurately isolate those
stocks that are "cheap" according to the metric in
question, but they do not take into account perhaps the
most important factor for real-world value investing: do
institutions see value in these stocks, and are they
willing to accumulate them?
The Value Leaders system is designed to isolate
inexpensive stocks undergoing accumulation -- and thus
avoid value traps -- by combining traditional
fundamental valuation metrics with one technical metric
that suggests strong institutional money flows: 6-month
Relative Strength. In practice, the types of names
you'll typically see on our value rankings are
turnaround stories that market participants are betting
will succeed, cyclical companies near the trough in
their cycle, and/or companies that are about to benefit
from more favorable commodity prices (to name a few
scenarios). Moreover, the companies on our list will
feature managements that are decidedly
shareholder-friendly, as evidenced by attractive
dividend payouts and/or active share buyback programs.
Top performers in 2012 include
STX +65%, SEM +56%, AOL +55%, GPS +54% and many
more.
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Special Reports - Options Volatility Analysis &
Commentary
Our Special Reports column is designed to identify
stocks and related options that have the potential to
make big moves -- in either direction -- on upcoming
volatility catalysts. Since there are hundreds of
potential catalysts of interest each week, we try to
narrow the list down to the most important items so that
traders can identify big potential movers and be aware
of any upcoming event risk in their stocks in order to
hedge existing positions. We also focus most of the
attention on stocks that have options available to
trade, since the volatility expectations are most
closely related to options market prices and activity.
Our screening method allows us to catch less
publicized events that may be highly anticipated by
options players, find known events with the potential
for volatility that may not be highly anticipated by the
options market, and flag catalysts far in advance,
before interest heats up immediately ahead of the event,
when options market volatility begins to incorporate
heightened expectations for volatility.
Recent performance highlights include:
- 20+ short put
strategies provided an average return of 45% on the sale
of the puts in a month this summer.
- Options activity
analysis preceding earnings: P +14% following notable
call activity; JEF -7% following notable put activity.
- SRPT +300% and OCN
+21% after noting heightened expectations for volatility
prior to major volatility events.
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Liquid Momentum
Liquid Momentum is a technical trading system that
features both long and short ideas and helps subscribers
easily identify future leaders and uncover big
opportunities. Not only do we present ideal candidates
for both Day and Swing trading, but we also present
ideas that may qualify for more intermediate-term
position trades.
Each week we publish a Focus List of the Top 50 most
liquid stocks in the market, helping subscribers narrow
down their universe to a compact, actionable list of
names that evolves with the market. Our senior technical
analysts post detailed set-ups on Focus List stocks
throughout the week, alerting you to opportunities among
Liquid Momentum names. The quantitative screen that
generates the Focus List rankings is based on strong
fundamental and technical data points.
Due to the inherent nature of the relative strength
concept, the majority of these stocks have chart
patterns that are either already in strong uptrends or
in a few weeks consolidation along recent highs. This
underlying bullish tone qualifies these stocks as
“leaders” with high potential for out-performing the
broader market. Often these leading stocks that breakout
to New Highs from a sound consolidation pattern,
(especially in response to a strong earnings report),
have gone on to be big winners during the more bullish
phase of the market cycle between October and April.
Some notable Focus List performers include:
- Rackspace Hosting Inc
(RAX) rejoined our Focus List after gapping up in
response to strong August earnings results. After a week
of consolidating its renewed momentum, RAX began a solid
uptrend for a +28% return in 8-weeks.
- Gilead Sciences Inc
(GILD) appeared on our Focus List in early August after
a strong breakout to all-time highs in response to
earnings. After a few weeks consolidation, price began
to accelerate higher in September for as much as a +23%
gain.
- Lennar Corp (LEN) was
among the first of the Homebuilding stocks (along with
RYL, TOL and MDC) to join our Focus List in early
January of this year. LEN, along with its peers, have
logged gains ranging from +67% to +111%.
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