Wednesday, July 28, 2010

Notable Calls Network (NCN): Rockwell Automation (NYSE:ROK)

Sorry for the lack of posts lately. It's hot outside & the analyst community is fixated on earnings releases that still keep pouring in. So very few actual calls based on new info (checks etc.) are made.

It's pretty slow intraday as well, although we do catch an occasional mover or two on Notable Calls Network (NCN) each day.

For example today, a marvelous opportunity presented itself just after open in Rockwell Automation (NYSE:ROK). The provider of industrial automation power, control, and information solutions reported its quarterly #'s around 7:00 AM ET and at first sight it looked like another nice beat & raise.

The stock did very little in pre market. Almost no volume.

- Right around open, a new but very capable NCN member (a girl!) pinged me saying J.P. Morgan was actually out cautious on the name.

I felt the traders were looking for stuff to short (sell), so it immediately caught my attention.

- 09:32 AM ET, after getting the details I quickly distributed J.P. Morgan's comments:

ROK - J.P. Morgan out cautious/neg following results - ALERT
Solid quarter, but not the upside we’ve been used to. Headline EPS missed our above-consensus estimate, and the magnitude of the beat is much less than seen in prior quarters.. given recent beats, an in-line quarter is a meaningful event, and given the standing premium, we think the stock should have a down day.


The stock had already gapped down 30-40c, indicating there was indeed selling pressure present despite the headline upside. As you can see from the chart below the stock dropped like a ROK providing gains in excess of 1 pt over the next 10 minutes as the comments circled the trading desks.

A nice start to the day.


This is how Notable Calls Network (NCN) works - sharing the flow. We catch them every day.

Want to be part of NCN?

It's easy. Just shoot me a brief email that includes a short description of yourself and your AOL nickname.

Please do note that contacts via IM are limited to people with:

- 3+ years of trading experience

- Access to quality research/analyst commentary

- Ability to generate and share (intraday) trading calls

I will not accept contacts from purely technically oriented traders, penny stock fans or people who have less than 3 years of experience in the field.