Value Bounce

Looks like the equities market has bounced back so it wasn't a correction, just a minor nervous pullback.

So here's my strategy that's making me the most money. I call it the value bounce - I look for a company that is well run, profitable, growing and just announced ahead of earnings call that they missed their earnings by a small margin (5-10%) and maybe cut their guidance by 2-5%. This usually causes a 20-40% drop in their stock price.

Here's the trick, let them hit bottom, buy and wait until the earnings call then ride it up and jump off before the peak. Don't get too greedy.

I've done this on these stocks:

LYTS - bought Jan 11, sold Jan 25 (22% bump)
HP - bought Jan 4, sold and then got back in this week (20% bump)
NTRI - bought, sold, bought again in the past 2 weeks @ around 41.52 (looks like 23%+ bump)

Cramer hates all of these companies but there is opportunity wherever there is panic and greed. Don't panic and don't get greedy and you might get lucky.