Bernard. WTF is just fine:) (Stands for WhutTheF*ck) sometimes in this market.
In answer to your question. Usually I play OTCBB, but have been mucking around about a bit in the Naz this month, trying to bottom feed on some of the Internet BTB sector, particularly those that have been beaten down badly. Have been reading a lot of trades papers where some are using this method.
Formerly (as you said) the pattern has been to buy during the pre-earnings run, and then sell before the news to get the greatest gain. However, in this market, with so many internet companies having earnings disappointments, it seems the market is beginning to take a "show me the earnings first stance."
I had been trading INFT (Inforte) off and on since about March, am quite familiar with them, and know that the never disappoint, usually having an earnings suprise. They were due to report on 10/12, after the close. The week before earnings, the price dropped considerably to about $25. The run began only just before 10/12 but the big increase was the day AFTER the report, when it ran up to $37. I was able to sell at 35 1/8, on Friday. (Didn't get it all, LOL). They have been closing lower since.
I am trying the same theory with PXCM, (same sector), although I am less familiar with this company. Checked the analysts, and there were 10 strong buys, 9 buys, and 1 hold recommendation. Saw a nice volume spike on 10/13, and got in early Monday. They reported today after the close. Earnings were supposed to get $.05 and they reported $.06. There seemed to be a lot of selling today, not the strong buying I had hoped for, but I am still holding. We'll see what happens in the morning. I hope they behave like INFT did. Otherwise you can call me WhutTheF*ck:)
Sorry I got long winded, but I have been seeing a difference in the NAZ trading patterns to include increases "post release". I hope that will be the case again.
Happy Trading
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