Tuesday, July 26, 2005

It is that season

Earnings season that is. Time when investor overreaction is in full display. A few warnings over the last 2 weeks have created some takeover target buying opportunities. In the past, I have been able to amplify my gains by buying or averaging down after such warnings.

In the last few days companies that have warned and that have been hurt include Molina Healthcare (MOH), AmeriGroup (AGP), Avid (AVID), Investors Financial Services(IFIN), Radware (RDWR), Avon (AVP), Infospace (INSP) and Pharmion (PHRM). Given the market's shortsightedness, this reaction can be considered natural, but for long-term holders willing to wait for the buyout this is a good chance to buy.

I have mentioned Molina before, in this post. I did buy a few over the last 2 days, though this buying was done with cash that I may need in a few weeks, allowing me to hold onto just a few shares for the long run. I will be seriously considering buying the others in the above list.


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