GE Falling Sharply in Pre-Market Trading - Time to Buy?
Posted by Brooks McFeely on Fri, Apr 11, 2008 @ 08:33
The sellers are dominant in active pre-open trading on the heels of an earnings report from mega blue chip General Electric (GE).
As reported by MidnightTrader.com a few minutes ago:
GE reports Q1 EPS of $0.44 per share, below Street
expectations of $0.51 pe share. Revenue was $42.2 bln, worse than the
Street view of $43.6 bln.
The company lowered its full year EPS guidance to a range of $2.20 to $2.30 per share, below the Street view of $2.43 per share.
Q2 EPS is seen at $0.53 to $0.55 per share, vs. expectations of $0.58 per share.
Traders have sold off shares in early trading to $32.60, a level not seen since June, 2006. Using history as a guide, it may be time to take advantage of the fear. GE is recently favoring a narrowing trend between the sessions, cutting
back its pre-market earnings-driven percentage performance in the
following regular session in three of the last four quarters.
On Jan. 18, 2008, GE advanced 2.3% in pre-market trade after
meeting Q4 expectations and maintaining its 2008 guidance largely in
line with the Street view. The stock added to its upside in the
following regular session, gaining 3.3% by the closing bell.
On Oct. 12, 2007, GE lost 1.5% in pre-market trade after the
company met Q3 earnings expectations, beat on sales and guided for its
Q4 and full year earnings in line with the Street view. The stock saw
its declines reverse slightly during the regular session, closing out
that day's trade down 1.3%.
On July 13, 2007, GE advanced 1.6% in pre-market trade after the
company beat by a penny on earnings and set forward guidance in line
with expectations. It narrowed its upside in that day's regular
session, rising 1.2%.
On April 13, 2007, GE gained 1.1% in pre-market activity after
reporting quarterly results that matched estimates and setting its
outlook in a range that straddled the Street view. The stock saw its
upside cut back between the regular session bells as GE ended the day
with a 0.5% gain.
It isn't easy going long with so much negative sentiment out there, but therein lies the reward.