Pls check my post after its ER " pull back may not be good for trader but for investor". WFR is another typical case happen here. If you do your DD, can find that whether it worth $60 or not.
Normally why will a stock react drammatically after ER? Traders normally only check their those stocks who have been fully appreciated such as HMIN, WFR,etc. If many people are bullish toward them before that, the bigger proft they can make is to reverse the trend. Remember Trader normally don't care too much about fundamentals, just no time and no interest. Any pull back for good stock will give super opportunity to buy. AOB is another case. Last ER, dipping from $12 to $8.6. But according to my evaluation at that monment , buying between $8.2~9 is the strong buy. The fact is that AOB only stated below $9 for only one day. Now check its price just after 2 months, already giving 27% if you buy at that monment. 2 months , 27% , is it bad? WFR fell after ER ,but if you know its fudanmental well, opportunity lied there , not take more than 2 weeks to get another 11%.
No matter what, knowing a stock can help you gain confidence in trading most of the time.
But always remember, investing is investing, trading is trading. If you wanna trade, don't miss with investment. if you wanna invest, don't miss it with trading. :)
4 comments:
NYX，还有NYX ;)
hehe maybe:)
WFR a good choice for investors? I feel its PE too high....
Its pe currently is 32 for a revenue growth rate 95% and earning growth rate 52%, PEG around 0.7. I would say it is not high compared to others.
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