AEHR - Study of Episodic Pivot (EP)
$AEHR (Aehr Test Systems) is one of the best winners in the last two years, up ~1400%. The move made by AEHR is impressive due to the fact that it made majority of its move during a duration bear market. As @PradeepBonde would say, this is a… twitter.com/i/web/status/1…
AEHR reported Q4 2021 earnings and revenue data on 7/15/2021. Prior to the earnings, AEHR closed $2.81 with a capitalization of 66M. Below is the monthly chart of AEHR prior Q4 2021 Earnings:
Barring the move made in 2006-08, AEHR was in a downtrend majority of its existence.… twitter.com/i/web/status/1…
▪ On 7/15/2021, AEHR reported Q4 2021 earnings – EPS of 0.04 vs 0.02 (surprise of 100%) and Revenue of 7.64M vs 7.03M (9% surprise). EPS were up 233% and sales were up 103% from the same period last year.
▪ Even though the revenue basis was small, the company guided 70%… twitter.com/i/web/status/1…
This was reflected on the price movement and volume post earnings. AEHR surged around 200% in the 4 sessions. Post earnings, AEHR traded around 78M in volume, many multiple of its average daily volume of 400K shares.
Below are
(i) 5min intraday chart on earnings day and
(ii) 15 mins multi-day chart post earnings, where it made ~200% in couple sessions as immediate reaction to earnings
After the first wave of reaction to the earnings, AEHR price surged further last two years – currently up ~1400% from the first earnings EP session. There were lot of catalyst along the way, primarily from great revenue growth numbers and profitability during this time period.… twitter.com/i/web/status/1…
$AEHR presented a lot of great swing trade opportunities in the last two years. Below, I will be noting down some of them.
Jul 2021 - Oct 2021
Oct 2021 - Dec 2021
Q1 of 2022 - market indices were correcting during this period
Jul 2022 - Oct 2022
Oct 2022 - Dec 2022
Q1 of 2023 - Market rally provided some good opportunities
Finally to wrap up, short note on Episodic Pivots:
▪ Look for life changing EP candidates everyday – stocks with big catalyst. They are very rare contrary to popular fintwit belief- on average there are 2-3 true EP candidates in a year.
▪ Best EPs are stocks with years of… twitter.com/i/web/status/1…
*CORRECTION on the MarketSmith data. The right one for AEHR is below:
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