GO
Loading...

Get Out of This Stock Ahead of Earnings: Pro

Thursday, 5 Jul 2012 | 6:21 PM ET

Marc Chaikin of Chaikin Stock Research has developed a proprietary model for predicting stock advances and declines, one that he says is very accurate.

And ahead of earnings, it’s telling him, get out of Wynn Resorts.

On CNBC's Fast Money, Chaikin tells us about his system - something he calls power gauge ratings, “a 20-factor model that distills a lot of influences (on a stocks) such as earnings estimate revisions, earnings surprises, short interest data and insider buying."

It’s a quantitative model that he says has been very accurate. In fact, he calls it his GPS for earnings season.

And the power gauge is saying that Wynn is very vulnerable.

"Although they reported a positive earnings surprise in April, the stock has trading poorly throughout May. Analysts have been lowering estimates. They report on the 16th and because of the power gauge warning, it’s a name I would definitely get out of ahead of earnings," Chaikin says.

Chaikin: Earnings Strength to Come From Tech, Retail
Marc Chaikin, Chaikin Stock Research CEO, says investors should sell stocks with bearish ratings ahead of their earnings reports.

Posted by CNBC's Lee Brodie

Read More from Fast Money:

> Simple Strategies Behind Supersized Successes

> 10 Top Stocks for the Long-Term Investor

> Top Apple Related Stocks for 2012





______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On July 5, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long MNST; Joe Terranova is long NKE; Joe Terranova is long AAPL; Joe Terranova is long UPL; Joe Terranova is long WFM; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long LPX; Steven Grasso is funds long ABX; Steven Grasso is funds long CUBA; Steven Grasso is funds long GERN; Steven Grasso is funds long J[Q; Steven Grasso is funds long HSPO; Steven Grasso is funds long MU; Steven Grasso is funds long NYX; Steven Grasso is funds long PRST; Steven Grasso is funds long VVUS; Steven Grasso is funds long XRX; Steven Grasso is funds long ZNGA; Steven Grasso is funds long CVH; Steven Grasso is funds long GM; Steven Grasso is funds long NYX; Steven Grasso is funds long TBT; Steven Grasso is funds long WLP; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long TJX CALLS; Pete Najarian is long NFLX CALLS; Pete Najarian is long MOS; Pete Najarian is long PCX CALLS

For Michelle Meyer
Nothing to Disclose

For Brad Lamensdorf
Brad Lamensdorf is funds short FOSL
Brad Lamensdorf is funds short JCOM
Brad Lamensdorf is funds short COL

For Scott Mushkin
Jefferies Group, Inc. makes a market in the securities or ADRs of Whole Foods Market.
Jefferies Group, Inc. makes a market in the securities or ADRs of United Natural Foods.

For Mark Chaikin
Nothing to Disclose

CNBC.com with wires.

  Price   Change %Change
WYNN
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report