Total Pageviews

Friday, April 27, 2012

Good price action for Vertex following a bad earning report

Vertex today reported earnings and revenue, both missed estimates. Its adjusted net income was 55 cents per share, short of mean estimate of 58 cents per share. It fell short of the average revenue estimate as well of $456.1 million. Usually this kind of missed earnings would lead to a big plunge of the stock price. But it didn't happen to Vertex. Rather, it jumped almost 3% today. See below today's chart of VRTX. This is a very bullish price action for a stock advancing significantly in facing bad news. This may likely mean the bottoming of a stock. I have talked VRTX before and I like the company as a long term investment. Maybe now is the time to buy the stock. The only think holding me back a bit is that I'm still expecting one more heavy leg down for the whole market. If this indeed occurs, most of the stocks, if not all, will come down with it. That's will be the best time to buy your darling stocks.

No comments:

Post a Comment