I wrote on April 12, 2006 and again in an interim report on May 31 about Starmine earning predictions. They got the direction of earnings surprises right in 8 of 10 forecasts. We wanted to wait past the end of the next quarter to see if predicted earnings surprises would turn into stock market performance. That is, I wanted to see if positive surprises would lead to above market performance and if negative surprises would lead to below market performance.
So what were the results? First the index, the S&P 500 Index fell 0.60% (less than 1%) from the close on April 12 through about 10 minutes before the close on July 28, 2006.
The companies with positive predicted surprises with their results follow:
CELL -45.78%
CSX - 6.43%
GILD 1.78% Our first positive and our first out performer
PD - 5.34%
DRQ 19.29% Finally a good performer
