Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

OPWV..e-mails on this 'frequent watch list play'... At this point just when there are a lot of bulls out there and earnings are coming out April 18, we MIGHT have a bit more upside taking the form of an exhaustion move, until OPWV pulls back. OPWV is not easy to 'guessestimates' what the earnings numbers will be but as usual we are still playing that one on the long side until the trend turns, possibly as early as Monday. The formula by now is easy

1) if they meet or beat OPWV is a rocketship
2) If OPWV misses estimates even by 1 cent the stock will sell off
3) This is now a THIRD scenario, they could beat now but lower guidance and estimates for the future which could set up as another JNPR type of trade. Up the day after the report and selling off strongly at the spike high. OPWV was a "hope floats" stock a while ago, but moved up well enough to be considered a possible short play. Its not one we recommended holding long through this weekend, but it might gap up and still be okay for a while, but it might set up well as a short on the spike high, it will usually go in the direction of the nasdaq futures contracts.