The Earnings Catalyst That Can Start a Major Move
FEIM is a great example of what I mean by an earnings catalyst. The company reported roughly +486% EPS growth and +70% sales growth, and the stock responded with an explosive move on heavy volume.
This is the type of earnings catalyst that has shown up repeatedly in the work of O’Neil, Minervini, Zanger, and Kullamägi.
Different traders, different terminology, but the same underlying idea: a major fundamental surprise can cause the market to rapidly reprice a stock, and the resulting price and volume expansion tells us institutions may be paying attention.
