Trade in Penny Stocks with the Help of Penny Stock Earnings Calendar

Posted by

Trade in Penny Stocks with the Help of Penny Stock Earnings Calendar

The penny stock earnings calendar reveals the forthcoming earnings date for the stocks. You can see from this calendar the stocks that are reporting their earnings today, tomorrow, any day this week, any day next week, this month, next month, so on. You can filter the earnings calendar based on stock prices and as well as volume so as to enable yourself to see only the preferred stocks on the calendar.The earnings calendar is more particularly featured with earnings announcement, sales announcement, analyst’s estimates with earnings revisions and guidance, stock split announcement, ex-dividend dates, and today’s economic events. Now take a look at how these features of penny stock earnings calendar assist in trading.

What is the earnings announcement?

An earnings announcement is an officially published public statement of a Company showing the profitability of the Company for a specific period, typically a quarter or a semi-annual or an annual. However, the announcement comes on a specific date during the earnings season typically in the months just following the end of each fiscal quarter. That is to say, the announcement occurs in the months January, April, July, and October. The announcement is further significant from the point of view of earnings estimates that analysts issued earlier for the immediately preceding quarter for which the announcement is made. If it is seen that the Company is profitably leading according to the announcement, its share price can get leverage and increase after the information is released.

Speculations on the earnings announcement

As the earnings announcement shows the Company’s profitability on penny stock earnings calendar is an official statement, the days approaching the announcement date often create volatility and are filled with speculations amongst the investors. The estimates of the analysts can be strenuously off-the-mark and the Company’s share price can frequently adjust up and down as the announcement date approaches day by day. So you should be very cautious during this period for any sale or purchase of penny stock. As the days leading up to the announcementon the earnings calendar, the speculative trading occurs to inflate share price artificially in the market.

Earnings announcement and analyst’s estimates

An analyst value a Company’s future Earnings per Share (EPS). This estimate is arguably an important and significant input to the investors. Analysts consider forecasting models, management guidance, and other fundamental information that are required in deriving the EPS. For calculating EPS they might apply the DCF (discounted cash flow) model. If the value which is arrived at through DCF methodology is higher than that of the current investment cost then the investment opportunity could be profitable.

But the problem for evaluating a penny stock’s future EPS lies in the forecasting model due to the lack of management information and other fundamental information of the Company which is no less pertinent while calculating the EPS. And this is the reason that the investment in penny stock is very risky. So you need to be very vigil about the information of the penny stock.

Leave a Reply

Your email address will not be published. Required fields are marked *