During earnings season, relaying our thoughts on every stock residing in our Model Portfolios (and more) is always a challenge. Keeping up with the influx of releases, conference call transcripts, and filings proves to be a veritable task, especially in the face of using in-house tools that inundate us with the good, the bad and the ugly, as well as our system of using certain kinds of price movements (for example, new highs) that could give us an initial clue that “something is brewing.”
Of course, our first and foremost priority is to relay as much opinion on our high conviction stocks as possible. In this vein, a shotgun approach is something that may be needed. Because we put ourselves in a position to get our Cloud Communications Trio presentations out before their earnings were released, knowing full well that there was a good chance that they would announce favorable results, we knew that our work was cut out for us with respect to all the other stocks in our universe, since their numbers were and are also on deck.
Now that earnings were posted by two out of three companies, we were not disappointed. In fact, one of the highest conviction picks reported strong results and went on to hit a new all-time high on Friday. There’s no time for regret – we still think the stock’s best days are yet to come.
The other had a muted reaction to good earnings, which can still give investors a chance to take a shot on a company (that we think is an easy double). At this point, it’s obvious to us that they don’t fully understand the story as much as we do since we’ve spoken with the CEO multiple times and at great lengths.
But there was so much more to do.
While I was on the go, I used the shells I had in my pocket to point out some of the other standouts in a PodClip earnings summary recorded on 11/11/2021 available for premium members. It made sense to mention the two of the trio that did report, one of which significant information arbitrage was available, but there were several others where substantive information was available and worth discussing.
See more earnings summaries below.
As an aside, since a lot of our premium members are starving for more information on a U.S. Listed China-based company we are bullish on, , we finally made the choice to do another fuller write-up on it in light of some new information.
This is on top of the volumes of research we’ve already compiled on it, especially in the past 2 to 3 years. The article will be available this week, and covers how we still believe, perhaps more than ever, that this new bullish information will serve as fuel for a potential explosion in the stock price.
Years ago, there were assumptions that a similar event to the one we are expecting would pan out, and the stock rose by several hundred percent. The company’s endeavors didn’t pan out, and the stock came back to earth in a large way. We were able to ride the stock by another several hundred percent when once again, similar expectations were anticipated, but once again dashed.
But that was then, and this is now. We’ve been waiting a while, but no one ever said investing was easy or should make you rich overnight. Some of our best performing stocks took years to pan out. Please look for the report soon.