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<DIV><FONT size=2>I think it depends on the mood of the market and how earnings
are coming in. A few quarters a go, I made a several good overnight trades
by buying the day earnings were supposed to come out and either selling the next
day or setting a stop and riding it. In this particular case, I noticed
that the electronics/semiconductor stocks were making big pops on their reports
so for the second half of the earnings season, I bought stocks that had been in
positive trends or were flat going into the earnings announcement. If you
look at this quarter, most stocks that are holding flat going into the earnings
release, are dropping hard the day after. On the other hand, some stocks
that sold off hard going into their release, popped up big for a few days after
(specifically, I'm thinking Yahoo but I think there were others).</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>I remember one guy who made about 3 great reversal trades
around earnings on one specific stock. This one was really funny.
Before Viagra came out, the biggest seller in the impotence market was a
company called Vivus (VVUS). They sold a solution that makes me cringe
when I think about it, but it sold and they made money. Naturally, when
Viagra came out, Pfizer's earnings took off and Vivus sales, with their
unpleasant impotence solution, headed for $0. But every quarter, the
people who had been following Vivus stock, held out hopes that earnings would
come in favorably and the stock would head up again. So this guy bought
the stock a couple of weeks before Vivus earnings came out and then turned
around and shorted it the night before. He made about 3 quarters of good
trades this way before Vivus was down so low and the followers were so
disenchanted that it didn't work anymore.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>The moral of the story: evey quarter is different, every
sector is different, every stock is different. But you knew that
already.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>One thing that seems to be making a big difference this
quarter is the conference calls with the analysts. It seems that in the
SOX/wireless arena, a lot of the companies are giving cautious guidance going
forward so that is taking out some of the stocks with the 100 and 200
PE's.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Kent</FONT></DIV>
<DIV> </DIV>
<BLOCKQUOTE dir=ltr
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
Tony Smallwood
</DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:metastock@xxxxxxxxxxxxx"; title=metastock@xxxxxxxxxxxxx>Metastock
List</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Wednesday, July 26, 2000 9:11
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Flextronics</DIV>
<DIV><BR></DIV>
<DIV><FONT face=Verdana>Greetings</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Verdana>Could some one please help with an opinion on
this only slightly off topic matter.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Verdana>Last week I bought Flextronics (FLEX) at US$77 and had
intended to sell at around $83/84 after the results were announced.
</FONT></DIV>
<DIV><FONT face=Verdana></FONT> </DIV>
<DIV><FONT face=Verdana>After close yesterday FLEX announced an excellent
profit result and a two for one share split.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Verdana>Question ..... Do US stocks prices (all other
things being equal) usually surge ahead after a split so that two new
shares exceed the price of one old share?</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Verdana>Cheers from<BR>Tony Smallwood<BR>Brisbane,
Australia</FONT></DIV></BLOCKQUOTE></BODY></HTML>
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