I like two stocks using two different investing strategies (I will be positing the options strategy tomorrow). Robbins & Myers (RBN) has a strong correlation between earnings surprises and next day price change. This means the stock's performance after the release is highly dependent on the release and only the release. RBN also appears to have limited downside after their releases. The stock has missed the estimates 3 out of the last 5 quarters, but the lowest the stock has dropped after these releases was -1.5%. On the other hand, the two beats amounted to next day gains of 6.9% and 19.6%. The stock does have a higher P/E than its main competitors, but not enough to warrant significant downside pressure on the price. Another bonus is that the stock will pay a dividend to shareholders with ownership on or before April 9th (next Monday).
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