Sunday, April 08, 2007

Big Week For Earnings

This week is the first week that companies start reporting first quarter earnings. This week is likely to be a great gauge of how effective earnings plays may be in the coming weeks. I am confident that many stocks have the ability to beat the analysts' expectations, but I am unsure that these beats will translate into upward gains.

This quarter is unique because it is the first time the investment gurus are expecting less than double-digit gains from the first quarter results in 2006. There is significant concern that even if the numbers beat the estimates, stocks would sell off because investors would be discouraged with single-digit percentage gains in their EPS reports. That being said, I would encourage investors to invest this week with caution and check this blog regularly for an array of earnings plays.

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