Start of the Day with Chris Forte – Earnings

Posted on August 17, 2022 by Scott Shuda

The S&P just handed in its best results in an earnings season in 13 years says Bespoke Investment founder Paul Hickey speaking on CNBC.

“Coming into earrings season analyst sentiment had become extremely negative. Negative revisions versus positive revisions were at levels you don’t see often. Instead we rallied 10%.

Have we borrowed too much from the future? “Instead I think we’re getting pay back from the loan we gave in June coming into earnings season when the market plummeted thinking it was going to be an earnings disaster and we also reached peak panic over inflation. Instead companies did way better than expected.

What about the next few quarters? We’ve seen a sharp reversal in breadth. We had almost no stocks in the S&P above their 50dma in June, today it’s up to 90%! When you have 90% of stocks above their 50dma, when you first get to that level, forward returns over the next 3-12 months have been positive over 90% of the time.

What’s unique now is there’s over 90% of stock over 50dma and less than half above the 200 dma. Going back to 1990 you’ve seen that happen three times – in April 2009, October 2011 and May of 2020. The returns following those, the market did well. We think the market can do well.

‘Every time we see the market go up we see another note come out saying don’t trust the rally and the easy money has been made. But instead we see buying on strength.”
Intrusion (INTZ) has announced an agreement with OneSmartLaboratory to protect the Intelligent Laboratory Automation initiative for all OneSmartLaboratory client operations and connectivity. Intrusion Shield will be utilized through this partnership to protect the link and transit connections of medical laboratories. Aaron Warwick said of INTZ, “Just getting started, friends. Still on the appetizers portion of the meal…”
Scott Shuda posts “Quipt Home Medical Corp. (QIPT) Q3 Results – Earnings Call Transcript.” Scott helps us out by highlighting the um….highlights. Good read.
BoardwalkTech (BWLKF) keeps on climbing, ending the day up 6% to close at .70. Since June 28 it’s up 218%. Nice work by Florian Buschek.
QuickLogic (QUIK) Reports Fiscal 2022 Second Quarter Results and a large order” is posted by Ashleigh Day.
*Pressing my ear to
Aaron’s Elite Room, “QIPT: hard for me to understand the stock being down on such a strong earning report, but I will say the call was even stronger. I will be covering some of those details tomorrow during my monthly Elite call update. A lot to talk about on QIPT, INTZ, INFU, especially.”

“Charlie and I have not learned how to solve difficult business problems. What we have learned is to avoid them.” – WARREN BUFFETT

Good luck to all – Chris

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