Daily Gains Letter

Earnings Season

Public companies, firms that have their shares trade on an exchange, must make their financial reports available for investors to research every quarter, or four times a year. In an earnings report, a firm must supply revenue, expenses, net income, earnings per share, and all of the details in an income statement, cash flow, and balance sheet. Usually the months following the quarter-end are busiest, as this is when most companies will report their earnings.


Massive Job Cuts Reason Companies Meeting Earnings Consensus



Massive Job CutsOil services company Weatherford International plc (NYSE/WFT) surged more than seven percent last Thursday despite a massive shortfall on its first-quarter revenue and earnings. What gave investors optimism during the first-quarter earnings season for Weatherford was not the fact that things will likely not get worse, but that the company had fired 6,449 employees and another 3,550 or so to come. This, folks, is how companies are pleasing Wall Street. The cuts will save Weatherford more than $600 million annually. That’s a pretty good number to help offset the revenue decline during the earnings season, but it’s something that I also expect we will hear more of.

Job Cuts Boost Company Earnings, but Affect ... Read More



1Q15 Earnings Season: Early Outlook and the Top Investment Opportunity



1Q15 Earnings Season Early OutlookWhile many seem to be comforted by continued stock market highs, bad news could be brewing for the first-quarter 2015 earnings season.

1Q15 Earnings Season to Affect the Markets?

The stock market continues to see record after record. We had the NASDAQ breaking back above the psychological 5,000 level last Friday; now it’s within distance of its all-time high, but we are heading into the key first-quarter earnings season of 2015. Small-cap stocks, which had been the doormat in 2014, have regained their luster with a 2.4% advance in March, now sitting at a new record-high. Everything appears to be firing on all cylinders for the long side, but let me remind you ... Read More


Why This Chart Should Worry Investors



U.S. Economy’s Setting Up for a Volatile 2014Every day it seems as though the S&P 500 makes a new high. This strong performance over the past year is creating complacency, as more retail investors are piling into the market. However, I would certainly urge caution, especially for any new capital being put to work at these lofty levels. With earnings season upon us, we’ve already seen several sectors in the S&P 500 get hit significantly, especially retail stocks. We keep hearing about resilience among Americans, but consumer sentiment is not as strong as many analysts believe. This is why I wasn’t surprised when retailers disappointed. One of ... Read More



Healthcare Tops as 4Q14 Earnings Struggle



Healthcare Sector the Only Area of Attractive Growth Among Bleak 4Q14 EarningsIt’s that time again; another quarter has come to an end. The fourth-quarter earnings season numbers will officially start flooding in for the S&P 500 on Monday, with Alcoa Inc. (NYSE/AA) the first to report. However, the stock market is currently in a funk, beginning 2015 with weakening oil prices and continued concerns over the global economy. The problem: as the stock market searches for a reason to buy, several segments are suffering from the selling pressure. There is, however, one segment expected to look up heading into 1Q15 and that’s the healthcare sector. But more ... Read More



Is This the Discount Sale Investors Have Been Waiting For?



Discount Sale Investors Have Been Waiting ForOctober has provided the usual bouts of anxiety that have characterized the month in past years. I warned that we could see volatility and so far, this has been the case. From small-cap stocks to world-class blue-chip companies, we are seeing some selling capitulation emerge in the stock market. All of the major key stock indices are below their respective 50-day and 200-day moving averages (MAs). As I said in a recent commentary, the chart risk is high. Bearish investor sentiment continues to grip the stock market. We saw 354 new lows on the NYSE on Friday, followed by 308 new lo ... Read More