Locked and Loaded
Topped off the tank with NGPS at the closing bell today. The stock today announced a record quarter, over double the previous year. Result today? Market took the stock down by 19%. The catalyst? They were conservative and stuck to their original annual earnings estimate of 15-20% earnings growth year over year. Now the street might not be happy with that. Ok, I agree; I would expect a little guide up after this phenomenal quarter too, but it is not often that you have the wonderful opportunity to load up on a 19% markdown for a company with a blowout quarter. I think the downside risk is minimal based on that over-reaction, and I feel that the likelihood that I can turn 2%+ overnight is pretty good. Thanks to Greenspan's meeting out of the way, I am back in business trading until vacation sets me free. (Who am I kidding, I'll be trading on vacation too).