Stone-Cold Earnings Trade Lock of the Week




The business software company reports earnings results for the quarter ending April 30, 2012 on Thursday after the market closes. Wall Street expects the company to make $2.48 per share in the quarter. That estimate is a penny per share lower than where estimates stood 90 days ago. Intuit (INTU)  has exceeded expectations in each of the last four quarters. Shares of Intuit have been flat over the last 12 months. Analysts expect profit growth of 13% from the current fiscal year ending July 31, 2012, to the next. At current prices, shares trade for 19 times current fiscal year estimated earnings.

Stone-Cold Earnings Trade Lock of the Week: With the market sliding lower, shares of Intuit are likely to fall at a greater pace due to having a high valuation relative to expected earnings growth. Buy the June expiration put contract with a $55 strike price before the market closes on Thursday.

James (Jamie) Dlugosch is a contributing editor to MSN Money, The, and Traders Reserve. He has a long and distinguished career in the investment industry that includes editorial and publishing stints with the highly rated Rational Investor, The Prudent Speculator and the current Penny Stock Winners. Jamie was a contributing editor to InvestorPlace Media where his content was syndicated to numerous on-line financial sites including MSN Money and AOL Finance. At the turn of the Millennium he was the President and CEO of Al Frank Asset Management where he honed his skills under the tutelage of the well respected guru, Al Frank. With The Rational Investor Jamie adapted Al Frank’s long-term market beating strategy to reduce risk and increase ease of use for subscribers. He was quickly rewarded for his efforts by compiling the second highest total return of all investment newsletters in 2004 according to The Hulbert Financial Digest. His investment approach has produced winning returns in competitions held by MSN Money in their long running Strategy Lab. He also has successfully raised private capital for a variety of private ventures including the purchase of Al Frank Asset Management, an investment now worth many times its original cost. Jamie is frequent guest and contributor to a wide range of financial television, radio and internet broadcasts including CNBC, Market Watch and MSNMoney. Jamie holds a B.A. in Political Science from UCLA and a Masters in Business Administration (MBA) from the University of North Carolina, Chapel Hill. He resides in Minneapolis, MN with his wife Sarah and two daughters, Julia and Ellie.