Every 13 weeks, all publicly traded companies need to file a quarterly report.
Prior to the reporting date, stock jockeys (hedge fund and other short-term traders) build positions in the stock hoping to profit if the company beats Wall Street’s estimates.
When earnings are announced, they buy or sell on the news which can sometimes result in big price swings.
It’s not uncommon for a stock to rise or fall 20% after an earnings report that catches stock jockeys off guard.
Alpha Investors ignore that noise.
Unless there’s a change in our Alpha-4 Approach, we don’t make decisions on a business every 13 weeks.
In other words, we don’t trade the noise. It’s very difficult to make money consistently that way.
We have a much better way.
And I want to share with you why this is critical for Alpha Investors. So I’m doing something a little different today.
I’m sharing a clip from my Alpha Investor weekly update this past week.
In it, you’ll see why I don’t sweat earnings season and the crazy stock price swings … but there is one thing I focus on…
I read the earnings call transcripts. I want to find out what the CEO is saying.
And in the latest earnings call for one of the companies in our portfolio, the CEO has turned around the business.
He took it from a cash-burning machine to a profit machine.
I’ll share with you who the CEO is and why he is a rock star … and the company name and ticker with you here:
Or if you prefer to read the transcript, you can find it here.
1 Move From a CEO Can Change Everything
As you heard in today’s video, a company can launch into a profit machine rather quickly.
All on the power of one decision by the CEO.
And in my recent presentation — “The Next Billion-Dollar Move” — I share several stories of how CEO decisions have catapulted small, little-known companies into multibillion-dollar behemoths.
Regards,
Charles Mizrahi
Founder, Alpha Investor