I had an alert set for Genie Energy (GNE) at 9.75 which triggered this morning with the stock down at the open. I interpreted Genie’s chart as consolidating after its run to April 3rd’s high of 12.21, and my alert was set near the May 2 low with a tight stop in case that proved to be a mistake. A quick Twitter scan popped a tweet stating that Genie beat their earnings on both EPS and revenue. Hmmm. Once Genie collected itself and started higher, I bought a 1/2 position at 9.80.
Genie continued to fall, and upon further inspection I read that while their EPS and revenue beat sounded positive, their year over year comparisons were not so hot, enough so to keep Genie diving to the 50 DMA and beyond. Upon reading what I SHOULD have read earlier, I sold out of the position at 9.50 for a 3% loss.
I spent a good deal of time debating what to do with Xerium (XRM) ahead of their earnings call after the bell. I bought on April 22 at 8.40 as it broke out and I’m currently holding a gain.
While thinking it over today, I happened across a stock I’ve had my eye on for a while – Ducommun (DCO) – and saw that at one point the stock was down over 30% from yesterday’s close due to an earnings miss reported this morning. Such is the possibility when high-flying stocks fail to meet expectations.
With that in mind, I chose to sell my high-flying bird in the hand Xerium shares and avoid the gamble, exiting at 9.75 for a 16% profit. Higher or lower, I can always choose to buy back in with a proper setup.