It’s that time again – time for “earnings roulette” season. Or as I sometimes say “earnings blow-up season is right around the corner“.
You probably know I’m a fan of drinking games, so if you want to play along this earnings season… every time a company blames weak earnings and disappointing forward guidance on the “pandemic” you have to take a drink.
But the real purpose of this post is to point out the standard method for recommending a stock ahead of earnings. This generally applies to financial commentators wearing expensive neckties you’ll see on TV pounding the table on a “well-known company” ahead of the earnings release.
The great thing about recommending a “good stock” ahead of earnings is that:
1) You have a 50/50 chance of looking like you know what you’re doing
2) If the stock collapses after earnings it’s still a “good company”
“Coming up after the break, we’ll speak with one money manager that has three stocks you should buy ahead of earnings”
(cut to Flex Tape commercial)