Tuesday, June 25, 2019

MAGNA5

From Stockbee:

MAGNA5

MA massive earnings acceleration or massive sales acceleration or massive earnings surprise.
Massive = greater than 100% plus with EPS growth 100% plus growth on meaningful terms. 5 cents becoming 20 cents not 1 cents becoming 4 cents. 10 million revenue becoming 200 million not 10 million becoming 20 million
G gap up on earnings day of at least 4 % plus in after hours or pre market with at least 100k volume
N neglect or base of few months to years. low fund ownership
A sales acceleration of 25% plus preferable. Earnings growth without corresponding sales growth is questionable. But in turnaround situation this condition can be ignored
5 Short interest ratio or days short greater than 5 or 5 days

Entering and exiting NTRT trades

Enter after hours if you have high risk tolerance
Enter Pre market again risky as sometime the moves fade
Enter at open with 1 dollar stop
Enter after 15 minutes less risky but you might miss some gains.
Exit on trailing stops. I trail by 1 dollar and then 50 cents as stocks moves in my favor
Many of these moves fade later after first 1 hour or 2 hours
Some move continue for days.