| Using Earnings Uncertainty To Pull In Extra Premium |
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Peter Stone
Investors
Observer.com
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Earnings provides an interesting and exciting time in the market. Like awards, report cards, or elections, it is time to tally up the results and see how the companies are doing. There are a number of companies reporting this coming week and some opportunities to cash in on this extra excitement. After looking at a few of the more interesting companies that will be reporting, we will see how we can structure a trade to take advantage of the pre-earnings volatility spike.
PG&E Corporation (PCG) is a natural gas and electric utility located in California. The stock pays a 4.5% dividend rate and reports earnings on May 6, 2009. Analysts expect earnings of 0.72 per share. The company has had fairly steady earnings over the last three years. It met or beat expectations in 8 of the last 12 quarters.
Public Storage (PSA) should report earnings of an estimated $1.20 a share on May 7, 2009. As a real Estate Investment Trust, the company operates self-storage facilities. People who have acquired at lot of toys are frequently unwilling to part with them and it is usually cheaper to store them than to buy them again. The company has beat estimates 7 of the last 12 quarters. The stock pays about a 3.5% dividend yield.
Pengrowth Energy Trust (PGH) is a Canadian oil company. The stock pays a 15% dividend rate and reports earnings on May 7, 2009. Estimates are not available and earnings seem very seasonal. It would not surprise us if it did report a loss like it did last year and still pay the dividends.
Windstream Communications (WIN) reports earnings on May 8. Windstream is a phone company located in Arkansas that provides phone, Internet, and long distance services to its customers. The company is expected to report estimated earnings of 0.23 and has met or beat estimates for 6 of the last 8 quarters. The stock has a 12% dividend yield and a 5-STARS S&P rating.
Volatility is a technical term for stocks rising and falling on a regular basis. Anyone following the stock market knows that...
Peter is the lead analyst for the Investors Keyhole daily service. Although several analysts contribute to the reports issued throughout the trading day, he is the last one to see them before they are let out of our office into the light of day.
Peter is a numbers man who focuses on the type of investments that minimize risk while maximizing returns. He always likes to stay ahead of the pack and he uses all the information resources available to him to make the best investment decisions possible.
Investors Keyhole reports are short and to the point and that’s why we gave Peter this space to share his weekly insights, tips, strategies, and thoughts on subjects that can help you invest smarter.

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