Ah, Alcoa's glory days. Back in January of 2014 their earnings didn't quite meet expectations, missing by $0.02. Their stock dropped 5.4% the next day. However, it quickly rebounded, gaining 23.3% over the next two weeks.
In April of 2014, Alcoa beat by $0.04. The stock gained 3.6% the next day and 6.3% over the next few weeks.
In July of 2014, Alcoa's earnings beat by $0.06. The markets rewarded the stock with a 5.7% gain the next day and 13% over the next few weeks.
But then storm clouds rolled in and Alcoa hasn't seen the sun. In October of 2014 Alcoa beat by $0.09. The stock lost 4.2% the next day and the stock was down as much as 16.1% over the next week.
In January of 2015 Alcoa beat by $0.06. The stock lost 2.3% the next day and traded sideways over the next few weeks.
Now lightning began to strike. In April of 2015, Alcoa beat by $0.02, but got singed by the market. Initially AA lost 3.4%, and then traded sideways over the next few weeks. But eventually the stock was down as much as 40.6%, which includes the July 2015 earnings release (Alcoa missed by $0.04, gained 0.9% the next day, but followed with a 25.9% loss, adding to April's losses).
The storm was not over. In October of 2015, Alcoa missed by $0.07, dropped 6.8% the next day, and eventually was down 26.7%.
And finally, in January of this year, Alcoa beat by $0.03, but the market offered no mercy. The stock dropped 9% the following day and eventually hit a 23.3% loss within a week.
So of the past six earnings releases from Alcoa, if you had shorted the stock at the open after the earnings release, you could have made at least 16%, and as much as 40%, after five out of the six earnings releases.
Will Alcoa produce another great shorting opportunity tomorrow morning? Apparently the directors of the company don't think so. Four different directors bought a total of 87,097 shares of the stock over the past six months, spending a total of $640,735.00.
Decide for yourself. Bloomberg has an article this morning with more insight: Alcoa Looking to Finally Break Metal Shackles as Earnings Sink
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, please click on the following link: www.markettamer.com/seasonal
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