Tuesday, May 8, 2012

Latest quarterly earnings

Most highly rated stocks stumbled during the past week, as the overall market fell back into correction mode after a brief uptrend.
InvenSense (INVN) was among the week's big losers, sliding 20% in fast trade. It has fallen out of the IBD 50 lineup.
The maker of motion-sensing devices briefly climbed back above its 10-week moving average, but then ended below that level for the fifth straight week.
Investors seemed to be disappointed by the company's latest quarterly earnings result, which came out late Thursday and only matched expectations.
Ubiquiti Networks (UBNT) also lost 20% for the week and sliced through its 10-week line as it reported earnings. The networking gear maker had been holding above its 10-week average since January.
Other IBD 50 stocks retreated in a less dramatic fashion, but still showed signs of stress.
Among those finishing the week under their 10-week lines were Apple (AAPL), MercadoLibre (MELI) and Michael Kors (KORS). MercadoLibre has lost its spot in the IBD 50 screen.
Some stocks still managed to hit new highs, helped by better-than-expected quarterly earnings.
Online auctioneer Liquidity Services (LQDT), whose clients are
government agencies and corporations, jumped 15.5% for the week.
The stock is well extended from its last proper buying range after five up weeks in a row.
SolarWinds (SWI) touched a new high as it edged up 1%. The tech stock has formed an imperfect short-stroke pattern.
Monster Beverage (MNST) also soared to a fresh peak, but finished well off that level with a weekly gain of just 2%.
The energy drinks maker jumped as much as 28% on April 30 amid news that Coca-Cola (KO) had discussed buying it out, but then gave up its huge gain after Coke issued a denial.
For the week, the IBD 50 index slid 3.5%. That was better than the Nasdaq's performance, but worse than the other indexes' declines.
The Nasdaq dropped 3.7%, the NYSE composite 2.7% and the S&P 500 2.4%, as each index endured its worst week since late last year.
IBD-style investors should watch their stocks for signs of a breakdown. Don't let a hard-won gain turn into a loss. Remember it can be smart to harvest profits when they reach 20%, as well as avoid new buys during a correction.

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