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Kenjisan
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  • Buy Systemax Inc For Tuesday Earnings 0 comments
    Feb 22, 2013 1:28 PM | about stocks: SYX

    I usually recommend staying away from a stock during earnings. Systemax is announcing Q4 2012 earnings on Tuesday March 5th 12am, 2013.

    There are many hot stocks, but the problem is that people already know they are great value companies and their bright future is priced in. I feel Systemax Inc. is underrated and I believe they'll have a great Q4 earnings report.

    Systemax runs TigerDirect.com and CompUSA.com and I've noticed many TigerDirect deals this year compared to any other years.

    1. Trend shows an increase in share prices at the beginning of the year in the last 5 years

     Low Jan-MarHigh Apr - May% Gain
    2012Mar 07 - $9.38May 16 - $20.89+122%
    2011Mar 11 - $12.59May 13 - $14.49+15.1%
    2010Feb 12 - $15.80Apr 30 - $23.23+47%
    2009Feb 27 - $9.28May 1 - $16.93+82.4%
    2008Mar 07 - $9.38May 16 - $20.89+123%

    2. Noticing a lot more TigerDirect.com deals listings during Q4 2012

    I'm bit of an online shopper and always looking for great deals on our favorite deal sites such as Spoofee.com. I've noticed a lot more listings for TigerDirect this year than any other years before. Many are free after rebate deals and it seems like TigerDirect has tried hard to drive traffic last quarter. Let's take a look at some public information

    Google Trends for last 5 years for "TigerDirect"

    Alexa Traffic Reach

    My Battle Plan

    If they announce great numbers, I'm planning to hold until $18-19.

    If they announce bad earnings, I'd expect it to fall to the $8.88 area.

    Disclosure: I am long SYX.

    Stocks: SYX
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