Not a good earnings season start for me. Was hoping this earnings season would turn things around, no such luck yet.
I’ve had 2 stocks go up after earnings announcements, 2 stay about level, and 7 go down, some significantly! At least I learned a year ago or so to NOT buy just before earnings announcements as, IMO, the market seems to value any negative aspects of the announcements more than any positives. I had been considering buying SKX, SWKS, SBNY, and NFLX all before earnings (but I didn’t), and they all dropped significantly. I added to my NFLX position as it’s drop did not seem warranted, at least with a 2-5 year time horizon on the investment. I’ll have to evaluate the other drops over the weekend and possibly add next week (SKX seems the most likely that I’ll add to).
Will stay the course, adding if the drops seem to be unwarranted, but I gotta say, I’m getting tired of getting more opportunities to get in at lower prices while the market averages are at all time highs.
I don’t think it would be bothering me near as much if the markets were down currently, but it’s tough being down a bunch while the markets are hitting new peaks. I think it’s harder to justify keeping the “down” stocks, even if the thesis still seems intact, because of the knowledge that a general market decline will take my already down companies, down even further.
Still holding strong for now (I’m stubborn if nothing else!).
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Hi foodles,
For what it’s worth, you are not alone. I am in the same position as you and I am sure several others are as well.
Wiseguy
1 Like
Brutal day for me too, Foodles and Wiseguy. Just brutal.
Skechers and Skyworks are my two largest positions and, of course, I have PayPal too. My portfolio had been doing great since Brexit, but after today I think I’m pretty much back to where I was then. Ouch!
Matt
Long PYPL/SKX/SWKS
MasterCard (MA), PayPal (PYPL), and Verizon (VZ) Ticker Guide
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx
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SKX put a sizable hurt on my portfolio. I had trimmed down my SWKS position somewhat. But these two stocks combined, took a significant chunk of dollars/ bananas out of my portfolio.
Everything else I own was in the green today but red ink prevailed as in
minus 2.25% overall on a day when the indices are green.
All my assets (bananas), are in stocks. So it’s serious business.
I feel your pain.
Frank
I had been considering buying SKX, SWKS, SBNY, and NFLX all before earnings (but I didn’t), and they all dropped significantly.
After today’s drop, SKX is the best buy of the four tickers above.
I’ll have to evaluate the other drops over the weekend and possibly add next week
Hi foodles, The way it seems to me, and I could be way wrong, SKX and SWKS sounded in their conference calls like they were a little lost in the woods and hoping to find their way out. I was surprised by SKX. I don’t know enough about technology to know if SWKS will find its way out, but the new CEO sure doesn’t give me the same sense of security as the old. SBNY, on the other hand, is an entirely different story. They are clear about what’s going on: Growth was great, book vlaue was way up, loans were way up, efficiency ratio was way down, new banking teams came on, all the things you want to hear. Then they said this quarter’s earnings were impacted by a one-time set aside in case of possible loss, which reduced net income on paper. They said next quarter they did not expect any additional set asides. So next quarter will be the net income they should have had this quarter, plus the growth in net income they have every quarter (for 26 quarters in a row, anyway). This means next quarter will be a very large sequential gain. I bought A LOT of SBNY this week. But that’s just my opinion, and what I did. You decide for yourself.
Saul
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8 Likes
Thanks Saul - my goodness you are an early riser!
I agree on SBNY. My only issue is that INBK and BOFI are putting up even more impressive numbers or had been. I fully understand that comes with risk in both cases and get your reluctance to square the circle on the risk reward of those guys vs SBNY. I’m also very interested in Lending Club especially now they have snagged a top flight CEO. They had been growing like crazy. SBNY look the most risk free and high quality of the lot though. Unsure what further stimulation and lower for longer rate environment will do to them.
Ant
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my goodness you are an early riser!..SBNY look the most risk free and high quality of the lot though
Hi Ant, in Europe at present, so it’s not very early at all!
Yes, SBNY is super high quality, and super low risk, compared to INBK and BOFI, but a very small flyer in Bofi probably wouldn’t be irrational either.
Saul
Oh yeh you did mention it sorry I forgot. Enjoy summer in the old continent Saul hope you have the time of your life, didn’t mean to bother you whilst you’re on vacation!
Ant
“but a very small flyer in Bofi probably wouldn’t be irrational either”
Hi Saul,
What is a flyer ?
Frank,
Hope you are having a very good time in Europe 
I found what I think you meant about taking a very small “flyer”
with BOFI.
A speculative, risky investment.
Hi Saul, What is a flyer?
From my online dictionary:
flier |'fli?r| (also flyer) chiefly N. Amer. a speculative investment.
From the Merriam Webster dictionary:
flyer (variant of flier): a reckless or speculative venture —usually used in the phrase take a flier
Saul