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This is not a bad strategy, but we all know of stocks that beat their numbers and still got creamed because they did not beat their numbers by as much as some hoped or management was not enthusiastic enough about next year in the conference call.

For widely traded stocks, with expectations very high, I would guess this strategy is about 50/50. It might work better with thinly traded stocks where the sharks tend not to play.

A better strategy is to look for stocks that are expected to do well next year and hence report good numbers next year at this time. Then you have long term capital gains to collect next year at this time. And if the numbers at the end of the first quarter don't look promising as expected, you can easily sell and reload for the following year.
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