Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[Joe Stocks]

CAO- Earnings after the bell Thursday. This blimp is up nearly 100% for the last three months and 110% for the last 12. Most of that gain came in the last 60 days and I see no news to account for it. A retail auto parts dealer that has been riding the coat-tails of AZO and a couple of upgrades. Debt to equity ratio of over 4.0 and selling at a premium to it's growth rate. Lost money last year and sales gains were flat.

Refinanced $280 million in debt at 12% interest for 4 years. Dat some high priced short term financing. I would imagine someone that would have to borrow money at that rate may have issues to contend with. It's had quite a bit of build over the last three months that it may sell on the news. Just a thought. Looks ripe to me. My speculation is that the convertible holders have run it up to short in to to lock in very nice gains.

http://stockcharts.com/def/servlet/SC.web?c=cao,uu[l,a]daclyyay[dc][pc20!c50][vc60][iLb14!La12,26,9]...

Joe