Recommended Reading

Google Search

Google
 
Charts courtesy of stockcharts.com

Tuesday, April 20, 2010

SCL


SCL is one of the stocks on the earnings list reporting this morning, and is up big. It went through a very deep correction in January, then built the right side of the base but never completed it before today's huge gap. I'm fairly sure Yoda O'Neil would not like this chart much.



Here is the 5 year earnings history for SCL. It is coming off a run of 4 straight quarters of accelerating growth, including 3 of triple digit growth. this quarter's grwoth, while decelerating, is well above the 25% threshold that O'Neil looks for.

Revenue grwoth is a different story. Even though earnings are up, revenues are not, meaning this has been growing it's earnings by cutting costs. That is a red flag in O'Neil's universe.

No comments:

Google Analytics