I was doing some fundamental analysis and have found that if the company is financially sound( Increasing revenue, profit margins, and earnings quarter to quarter, High ROE, and Decent Current and Quick Ratio), the stock gets huge buying volume on certain days and price usually never crosses the level of support where the huge green volume was.
The price will then fluctuate for a while and depending on the company's performance and the market's expectation of the company the stock will either run up(good news) or sell off(bad news). If the earnings surprise was positive and the market has good expectations for the company's future performance, the price actually reaches near the price of wall street analysts' price target.
I've been observing EPAM and CALX since January and concluded with these observations.
Thoughts?
Note: I'm looking for input from people who can provide a meaningful discussion. Keep and useless or sarcastic comments to yourself.
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