Innophos Holdings, Inc., .IPHS , a leading specialty phosphates producer in North America, announced its financial results for the first quarter 2009 on may 4. Net sales increased 17.4% quarter vs. quarter, Operating income for the first quarter 2009 was $55.3 million, an increase of $31.9 million, or 136%, versus $23.4 million for the comparable period in 2008, Net income for the first quarter 2009 was $30.2 million, an improvement of $20.9 million compared to $9.3 million for the same period in 2008, Diluted earnings per share for the first quarter 2009 were $1.39 compared to $0.43 for the first quarter of 2008.
With all those positive news the price action responded accordingly, on May 4 the stock closed almost 12% above May 1st closing price, the following day the price gained 14%. On May 7 the stock opened at 19 and closed at 14.57 for a 23% loss in one day, also the volume for the day was the highest for the last 7 months.
I reviewed various financial blogs and sites and could not find any significant news on May 7 that correlate with the price drop, in fact in most cases there is not any news for that date. So that makes me think that maybe some well informed people know something that I don’t. That huge volume in one day signals institutional trading, individuals doesn’t possess the means to be informed so what we do is we follow the action.
My sell short stop is right below the last support at 14.
Guys remember that these are my ideas, in no case I am recommending to follow these trades, in fact I don’t recommend anything in this blog now or never.
Actually this blog has been designed for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security, which may be referenced upon the blog. Such offers can only be made where lawful under applicable law. The services and information provided through this blog are for personal, non-commercial use and display.
Always made your own research, that said, please: DO NOT RELY ON MY OPINIONS FOR ANY PURPOSE!
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- Erick Stern
- I am a civil engineer who likes charts, to me, speculating in the markets is both a hobby and a second profession and in my view the stock market is the most honest environment, since it is only your knowledge and preparation that matters. I live, and work in the construction industry, in the Dominican Republic. I read and answer all my mail so please feel free to write firstname.lastname@example.org Thanks, Erick