Stock Markets Exposed
Why is my AMSWA stock down when they posted quaterly gain????
This is ridiculous! Im somewhat new at this but...jeez. It doesn't make any sense. Im thinking stock is a crazy mans game. They posted quaterly gains and their share was 7 vs. an estimated .05!! This is shite What is the deal??? I watched in after hours trading and it went from 11.72 to 10.20 with hardly any volume difference. Why is that???
Public Comments
- I dont see anything on the news wires... that usually happens when during the conference call they announce lowered expectations going forward... or a loss of a big customer late in the quarter... or some other announcement that would indicate slower quarters ahead. it'll happen the otehr way too... where a company will post a larger than expected loss... but bounce higher based on outlook... don't let it stress you out... if the reasons you bought this company are still valid... and you believe in their long term potential... then you should 1. find out what was said... 2. decide if you still like the potential of the stock and if yes use this opportunity to buy more fun stuff
- By the time you try to figure out why a stock price is doing something, it will be too late to make your corrective move. The news you hear happens after the stock price has already made its move. Insiders buy/sell on what is happening within the company. They sell on the good news to retain their profits. Get away from fundamental analysis and learn about technical analysis and swing trading.
- I feel for you! But this kind of thing does happen. In answer to your question, the company's earnings after expenses was .08 per share, and the expectation was for .10. I'm not sure where you got that .05 figure. So the company missed, which is sure to send the stock lower in the short term. The earnings were better than last year, true, but with expectations for even higher earnings this 'good news' was already priced into the stock. Traders were already assuming the stock was fairly valued if earnings were .10 per share. Anything lower and the immediate reaction will be that the stock is overpriced. But take heart. The company's financials are solid, and earnings and revenues are both rising year-on-year. The company compares favorably with its competitors and has 0 debt. As a long term investment, I would guess this is a good candidate. It seems to be on a nice upward trend for the last several years, rising over 400%. If you're in this one for the long term I would say don't worry just yet. If you bought it just before the earnings came out, I would say that's a dangerous game. Wall street traders tend to 'buy the rumor, sell the news,' which means that stocks tend to drop off after earnings reports come out, often even when the news was positive.
