“Apple (AAPL) reports earnings on April 24 after the close. The consensus estimate is $10.05 for earnings and $36.73 billion for revenues. Of course, as usual, the breakdown of numbers by product category will drive the price of the Apple stock,” Nigam Arora writes for MarketWatch. “Apple stock price has lately been very volatile. The gurus have advanced several explanations. Such theories include Verizon not selling as many iPhones as some expected, details of chips from Qualcomm, controversy about the number of iPads sold in the quarter, and rumors of a smaller iPad with lower gross margins.”
The following is the set of principles and rules we review prior to the earnings release of every stock in our portfolio:
1. Nobody knows with certainty what is going to happen next
2. Figure out ownership popularity
3. Imitate smart money
4. Pay attention to whisper numbers
5. Use proper position size management
6. Keep an eye on the long term
Read more in the full article here.