No. of Recommendations: 0
I agree that it isn't worth it to play the earnings guessing game. I'm thinking more of recent examples like COH, SBUX, perhaps PCLN, Chipotle, etc. in which a patient investor was recently able to establish or increase positions in great companies with excellent long-term futures at knee-jerk depressed prices. This is a complete guess, but I am assuming that the huge drops each of these stock experienced was in part due to HFT immediately after earnings release.

I certainly wouldn't advocate taking a position in every company that drops 20% in a day, but when it happens to a company like one of the above (one in which we're familiar and believe that nothing long-term has changed), I believe those massive daily swings to the downside can be blessings in disguise.

That's what I tell myself at least :)

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.