Sykes: Why I'm "En Fuego" (On Fire) With Picks
Hey folks, we have guest blogger Timothy Sykes back today. And somewhat like Jeff Mishlove, earlier today, Timothy points out some of his successes from the past week. (Timothy does make a nice point below about information from the experts.) Here he is:
En Fuego! Yes, I can’t even use the English language to describe how my “Late Week Contest Picks" have fared. I was already feeling pretty good yesterday since I’ve had a staggeringly successful debut on the speaking tour circuit at Options University’s Investor SuperConference in sunny Orlando when I saw that BIDUreported blowout earnings. This was my #1 pick for the week so I was pretty excited when I noticed the stock trading up $27 or nearly 25% in after-hours action last night.
This colossal move helps make my point that avoiding higher priced stocks are useful for this contest. Unfortunately, the stock has cooled off a little during market hours today, but it’s still a huge $17 per gain per share nonetheless.
Some of my other picks have done well, too, as AAPL came through with big earnings, with the stock rising 4%, NTRI blew away the estimates, with their stock rising 3%, and SPWR rising 2% after great earnings, too. Like BIDU, these plays were up much more during the after-hours session as AAPL was up 8%, SPWR was up 7%, and NTRI was up an incredible 13% before fading. The large divergence between after-hour and market hour prices on these stocks represents a great investment lesson for the real world. After-hours trading is much riskier due to the increased volatility and lack of liquidity. So, if you have the stomach for it, there are tremendous trading opportunities in the after-hours session. I haven’t had much success during this time frame, but it’s just like any other niche in which some traders will excel.
Some of you caught my little trick about placing TUP in my “Early Week Contest Picks” instead of my “Late Week Contest Picks” since they reported earnings Wednesday night. I wasn’t mistaken, I just wanted to see if some contestants would pick up on my little trick and judging by the numerous emails I received, many of you did. Good! Don’t ever become lazy and rely on information given to you. More importantly, the stock soared nearly $2 per share (which is the biggest move TUP has seen in many years) so those of you who bought one of the most boring companies on earth were rewarded nicely.
Of course, ISLN taught me to focus on the charts, As I previously mentioned, their stock chart was horrendous, but I still picked it on the possibility that earnings would turn it around. The earnings stunk and the stock dropped nearly 30%. There’s nothing like a large loss to help reinforce my love of gorgeous charts.
I’ll have more picks next Monday; this hotel I’m staying at is gorgeous so I’m going to go on their lazy river and work on my tan. See ya!
Timothy Sykes is a hedge fund manager and star of the reality show Wall Street Warriors. He can be reached at www.timothysykes.com.
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