Since I mentioned AT&T (T) ----- which is a name I own some 40,000 shares of.... *that's called full disclosure*
It reported earnings yesterday. The earnings were "fine" - a small beat on top line - good subscriber growth... but this is a very large company with lots of competition. I don't own it for a big surge of growth. I own it because I feel safe investing my money in that name and they pay a pretty decent dividend.
The Investing 102 post is about paying attention to the ups and downs....
T is UP about a buck in the last 5 days. That's typical of many stocks that get bid up BEFORE earnings reports. It's called buying the rumor. Then many times - a guy would think -- GREAT!! My blah blah company just beat the whisper number and we're going higher from here.... and POP! Somebody pops your excitement... because the stock sells off! WTF is with that! That's called "selling the news". So there was a run up of expectation.... and then profit taking.
I used to try to TRADE like that. Making 50 cents here and there. Constantly trying to game the news. Getting ahead of the news and then getting out.
Here's the point --- I think T will trade off a buck today.... and years ago that would have freaked me out.. but I'm smarter than that now - and I go see (check a chart) that GEE! The stock ran up a buck just last week.... So it's not OFF a dollar so much as it is just trading where it was a mere week ago.
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