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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 :)

Fletch
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