Buy before reporting date or wait?

[Moose_]

February is reporting season and there are a few companies I'd like to buy now but am reluctant to prior to results. Interested to know whether others buy pre-results???

I guess if price is going up in the days prior to reporting, you could interpret that as the smart money getting in early.

 

[Init]

In my experience this can go either way.
If you buy before the report:
- People might have been underestimating the fundamentals of the company and you make a profit when the price goes up
- People might have overinflated the stock price expecting results which are higher than what is actually released, the stocks go down and you loose your stop loss margin.
- The results are poor and the stock price falls, you lose stop loss margin.

If you buy after the report:
- You may gain better information with which to make a decision about the longer term direction of the company and invest accordingly.
- If the results are good, you have potentially lost part of a long position as the price rises even higher, but done so with lower risk.
- If the results are bad, you can move onto other things.

 

[bigdog]

February is reporting season and there are a few companies I'd like to buy now but am reluctant to prior to results. Interested to know whether others buy pre-results???

I guess if price is going up in the days prior to reporting, you could interpret that as the smart money getting in early.

Moose
Suggest that you try this link
https://www.aussiestockforums.com/posts/1013332/


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You could monitor Bell Potters analyst "buy" and "sell" recommendations to actual action after and the issue of the half yearly report!!!
-- includes expected NPAT