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I automated my Investment Portfolio. My investment thesis is to buy high-growth tech company stocks with an upcoming earnings call in the next 90 days. I have

I automated my Investment Portfolio. My investment thesis is to buy high-growth tech company stocks with an upcoming earnings call in the next 90 days. I have a script that scrapes Yahoo finance and tells me which stocks to buy. Surprisingly it's worked well, and I've gotten a return of 44% last year

tylerpachal 8y ago
Do you automate the selling as well?
- hajrice 8y ago
  Not yet... Have considered it, but seemed to complicated. I use Robinhood
massaman_yams 8y ago
With earnings of publicly traded companies in the US reported quarterly by law, how is this distinct from the list of all high-growth tech company stocks?
- hajrice 8y ago
  The stock grows/declines severely during earning call. I use that to my advantage/leverage
  - jaredsohn 8y ago
    >with an upcoming earnings call in the next 90 days >quarterly by law I don't think you answered the GP's question. What is the point of looking at the earnings call date if your script just returns a full list of companies? (Or maybe when you said 90 days you meant a shorter time period?)
    - hajrice 8y ago
      I did answer it. I will try to illustrate it even further. Public-ally traded companies, regardless whether they're high growth tech or not, tend to have big jumps or declines in stock price on earning calls date. Take for example Shopify. Their stock is very fast growing, however, you'll always notice a decent bump during earnings calls. I buy 30-60 days before this earnings call, because I anticipate it'll grow in the next 30-60 days (for the earnings call), given the previous growth. I sell on the day of earnings call
      - massaman_yams 8y ago
        Ok, so an upcoming earnings call is not a filter, it's a buy signal/trigger.
- sillypuddy 8y ago
  Pretty sure earnings calls are not required by law, you may be thinking of quarterly reporting requirements like 10K/10Q.
marketgod 8y ago
Have you back tested this. It seems really risky.
- hajrice 8y ago
  What do you see as risky? I don't invest in companies I don't believe will be around in 10-15 years -- I don't invest in penny stocks. I invest in REAL companies (Amazon, Shopify, Atlassian, etc.)
  - marketgod 8y ago
    In a bull market you are going to have great returns but it just seems lucky. It's almost better and sit and hold. I'd back test the parts where I wasn't in the market, how much % profits were missed out due to compounding, fees, not being in the market and the time spent. Generally earnings aren't a great event to bet on as they get baked in until unless they are exceptional. It feels like picking up coins in front of a steam roller.
bytematic 8y ago
So is it more than a screen?
hajrice 8y ago
To clarify: I still have to execute the orders to buy and sell, but the thinking for when to buy and what to buy is automated. I just sell after the earnings or when I gain the desired amount (5-10% return)
- claydavisss 8y ago
  Aren't you at all interested in managing your capital gains exposure? Short term trades tend to play to the advantage of the broker (fees) and tax collector (short term cap gains tax)
  - hajrice 8y ago
    1) What capital gains tax? You can run it through a company, which is what I do. 2) Broker fees are $0 as I use Robinhood. Like I said, I made a ~44% return. If a $7 trader fee is your argument for it not being viable then you are most likely not investing enough money, or not getting a decent return.
    - zrail 8y ago
      “Just run it through a company” isn’t the whole story. You also have to qualify as a trader and file an election to use the mark-to-market rules, and then you actually have to do mark-to-market accounting.
      - hajrice 8y ago
        Profits that come from Stocks remain in your trading account. You transfer them from your trading account into your business bank account. The actual profit/difference is taxed. I don't understand what's so complicated?
        zrail 8y ago
        It’s not particularly complicated but it’s far from optimal. If you’re not doing anything special your profits are taxed as ordinary income but you don’t get to deduct business expenses, nor do you get to count that income toward deductions like self employed healthcare or retirement account contributions.
fosco 8y ago
Awesome! would love to see the code here

tylerpachal 8y ago

Do you automate the selling as well?

hajrice 8y ago
Not yet... Have considered it, but seemed to complicated. I use Robinhood

massaman_yams 8y ago

With earnings of publicly traded companies in the US reported quarterly by law, how is this distinct from the list of all high-growth tech company stocks?

hajrice 8y ago
The stock grows/declines severely during earning call. I use that to my advantage/leverage
- jaredsohn 8y ago
  >with an upcoming earnings call in the next 90 days >quarterly by law I don't think you answered the GP's question. What is the point of looking at the earnings call date if your script just returns a full list of companies? (Or maybe when you said 90 days you meant a shorter time period?)
  - hajrice 8y ago
    I did answer it. I will try to illustrate it even further. Public-ally traded companies, regardless whether they're high growth tech or not, tend to have big jumps or declines in stock price on earning calls date. Take for example Shopify. Their stock is very fast growing, however, you'll always notice a decent bump during earnings calls. I buy 30-60 days before this earnings call, because I anticipate it'll grow in the next 30-60 days (for the earnings call), given the previous growth. I sell on the day of earnings call
    - massaman_yams 8y ago
      Ok, so an upcoming earnings call is not a filter, it's a buy signal/trigger.
sillypuddy 8y ago
Pretty sure earnings calls are not required by law, you may be thinking of quarterly reporting requirements like 10K/10Q.

marketgod 8y ago

Have you back tested this. It seems really risky.

hajrice 8y ago
What do you see as risky? I don't invest in companies I don't believe will be around in 10-15 years -- I don't invest in penny stocks. I invest in REAL companies (Amazon, Shopify, Atlassian, etc.)
- marketgod 8y ago
  In a bull market you are going to have great returns but it just seems lucky. It's almost better and sit and hold. I'd back test the parts where I wasn't in the market, how much % profits were missed out due to compounding, fees, not being in the market and the time spent. Generally earnings aren't a great event to bet on as they get baked in until unless they are exceptional. It feels like picking up coins in front of a steam roller.

bytematic 8y ago

So is it more than a screen?

hajrice 8y ago

To clarify: I still have to execute the orders to buy and sell, but the thinking for when to buy and what to buy is automated. I just sell after the earnings or when I gain the desired amount (5-10% return)

claydavisss 8y ago
Aren't you at all interested in managing your capital gains exposure? Short term trades tend to play to the advantage of the broker (fees) and tax collector (short term cap gains tax)
- hajrice 8y ago
  1) What capital gains tax? You can run it through a company, which is what I do. 2) Broker fees are $0 as I use Robinhood. Like I said, I made a ~44% return. If a $7 trader fee is your argument for it not being viable then you are most likely not investing enough money, or not getting a decent return.
  - zrail 8y ago
    “Just run it through a company” isn’t the whole story. You also have to qualify as a trader and file an election to use the mark-to-market rules, and then you actually have to do mark-to-market accounting.
    - hajrice 8y ago
      Profits that come from Stocks remain in your trading account. You transfer them from your trading account into your business bank account. The actual profit/difference is taxed. I don't understand what's so complicated?
      - zrail 8y ago
        It’s not particularly complicated but it’s far from optimal. If you’re not doing anything special your profits are taxed as ordinary income but you don’t get to deduct business expenses, nor do you get to count that income toward deductions like self employed healthcare or retirement account contributions.

fosco 8y ago

Awesome! would love to see the code here