SMED Trade on Jan 11, 2021 15:59 from tjmiller2001: Tradervue User Stock Trades.

Late entry. I knew I wanted to get long on this last night, slept in, and missed the 10% run. Shows the value of having a plan and acting on it. I entered after a large green day because I still believe in the thesis and I think Wall Street will take notice soon.

SMED is seeing a significant increase in activity, based on Glassdoor, Stocktwits posts from employees. Employees were complaining about how busy they are. The CEO today talked about the increase in demand (The company disposes of used needles). Also, they have made efforts to improve their infrastructure to keep up with demand. Main idea: They've been busier than Wall Street thought they were and people are just now starting to notice.

Reported good earnings but not as good as the Street expected. Got out when I was sure that there wasn't an overwhelmingly positive response. Small profit.

NOTE AFTER EXIT: The next day, SMED rocketed up 12% on news that an analyst had upgraded the name. Lesson Learned below:

Lesson Learned: Even though the stock is up over 10% since my entry, this was a small win because options values decreased after earnings report. Sometimes it's better to play it safe and sell some/all of your position before earnings.

Don't always sell just because the reaction to earnings is bad on the day they reported. Analysts usually take a day to review the new data released by the company and the next more will release updated price targets. Consider holding even on a red earnings day if there are enough positive pieces of data from earnings that analysts could like.