The market is right back where it was to start the week last Monday. Our Stock Market Report opinion remains the same that market will have to clean away some major technical analysis trash in order to move on much.
Now that earnings season is about to begin in earnest, profits and losses will tell the story. If most companies come out of the basement and say the tornadoes have passed then we will hear the all clear sirens. If most companies just pop their heads up and retreat back into their holes, like the groundhog carnival bop’em game, the next sound we will hear is the next shoe hitting the floor.
We have one trading earnings companies investors might be able to profit from during the week. We sure hope you followed last week’s Trading Earnings pick ZEP. ZEP cleaned up and was up more than 30% Friday.
Crown Holdings Inc. (NYSE:CCK) reports its first quarter results before the market opens on Thursday (Crown Holdings Earnings Webcast.) Crown Holdings, Inc. is a leading manufacturer of packaging products for consumer marketing companies around the world. They make a wide range of metal packaging for food, beverage, household and personal care and industrial products and metal caps and closures.
We expect the packaging and containers company to announce earnings that will beat investors’ and analysts’ expectations of a 21 cent profit. Crown has moved past consensus estimates 6 of its last 7 reports. All 7 times the stock managed to move higher. The last 4 quarters have seen CCK’s shares rise by at least 10%.
Gutsy investors looking to invest a little with the potential to make a killing in an all or nothing proposition should invest in the April 22.5 Call Options. The Call Options expire this Friday and another 10% plus move puts CCK in the $25 range. At $25, the options are worth $2.50 cents. Less aggressive types might think about buying the stock for a pop if CCK can make it 8 pops in a row.