Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Approach Resources (NAS: AREX) jumped as much as 13% today before the company releases earnings.
So what: Usually a stock jumps after an earnings report, but Approach's investors are betting before the numbers are even out. It could be that a whisper number is out on the street, or it could be the rising price of oil today that has investors cheering.
Now what: Whatever has buyers moving in today, I don't see a big reason to get excited until we know exactly what earnings looked like in the third quarter. If it's a whisper number out on the street, then we're already behind the 8-ball. And if it's just traders betting on a good quarterly report, that's a gamble I don't want to take.
I'll sit out the move today and check back in after the close when management gives us something solid to invest on, like quarterly numbers.
Interested in more info on Approach Resources? Add it to your watchlist byclicking here.
At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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