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Epsilon is a proprietary investing firm. Also the developer of The Stock Advisor smartphone apps, a series of apps that deliver recommendations and investment education to its users, Epsilon has successfully outreached its services to clients around the world and continues to look for better... More
My company:
Epsilon
My blog:
EpsilonFinancial.com Blog
My book:
The Stock Advisor App Series (iPhone/Android apps, not a book)
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  • What will earnings do for Macy's?
    I recommended Macy's (M) on May 3rd in two of my apps, The Stock Advisor STG (iPhone/Android) and The Stock Advisor Elite (iPhone/Android).  The recommended entry point on May 3rd was $24.10; now the stock is trading just above $26.30 giving us a seven day return of 9.2%!

    My initial profit target was only 3.5% (to be taken within five days), speculating that the stock would bounce off of its (then) resistance ceiling of $26.00 (see graph below).  Needless to say, its price to date has exceeded my expectations.


    Now, with earnings coming up tomorrow (May 11) the question is, will Macy's stay above the $26.00 mark and continue to climb?

    Zacks analysts estimated earnings of 18 cents a share.  If this happens this would significantly beat the prior year's earnings of 5 cents a share.  It looks as though Macy's really started turning up the heat in April...

    "The better-than-expected sales results for the four-week period ended April 30, 2011 compelled the analysts to revisit their estimates. Macy’s comparable-store sales for April 2011 rose 10.8%, following a marginal increase of 0.9% registered in March 2011, and compared with a 1.1% jump witnessed in April 2010. Management had earlier forecasted an increase of 8% to 9% for the month under review." - Yahoo Finance

    The flip side to this coin: competition is still fierce, Macy's debt to capitalization ratio is still a concern, and customers are still having a hard time with increased fuel costs, credit availability, unemployment, debt, etc., etc.

    Hold or sell?
    Tags: M, Macy's
    May 10 6:03 PM | Link | Comment!
  • The Stock Advisor now available for Android!
    For all you Android users out there, the time has finally come!  All five of The Stock Advisor apps are now available for the Android!  My apologies for the wait.
    May 10 3:38 PM | Link | Comment!
  • The Stock Advisor STG/Elite's (Week 4/18-4/22) Success Rate = 87.5%


    Here's a look at The Stock Advisor STG/Elite's success rate for the week of 4/18 through 4/22 (NYSE was closed on 4/22).  Fourteen of the sixteen recommendations reached their respective profit targets giving us a success rate of 87.5%.  Nice work to those who took gains!

    In an attempt to better my strategy, take a look at the light blue cells.  They represent stocks that reached their respective profit targets after falling below their protect from loss points.  It looks like four of the successful fourteen stocks performed this way, giving us the 28.6% figure at the bottom.

    Ideally this figure should be 0%, or in other words, the stocks that reach their targets should not hit their loss point first.  This, obviously, may cause traders to exit the position and miss out on the gains.

    Of course, it is my goal to achieve a 100% success rate and along with that I am also hoping to keep the figure mentioned above as low as possible.  For current STG and Elite users please go over this data sheet and adjust your strategy if need be.  In the future I may begin lowering protect from loss points a little in my attempt to lower the above mentioned percentage (while also keeping the success rate high of course). 

    Thanks guys, and please contact me with any questions!

    Apr 30 7:05 PM | Link | Comment!
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