Intel Earnings

The most important day this week is tomorrow when Intel reports its earnings. I have been wondering if it is safe to buy stocks before they report their earnings in hopes that they will beat the expectations. Intel is suppose to earn, a ridiculously low, 2 cents a share. Now, if Intel beats its earnings, it is going to give me the green light that if I can find companies where the earnings expectations have had such a huge drop from the previous year, and has had some catalyst for higher earnings, then they are a buy going into its earning release. I expect Intel to beat its expectations because its biggest buyer is in China, where the GDP is still a very high 6% so I don't expect a huge drop is business from China. Intel's Atom Processor has been a hit and I expect it to bring in solid revenue. Now, with huge companies such as Intel, the analysts are not usually wrong, but they might be tomorrow. If Intel can beat its earnings, than I think analysts will have finally pushed expectations lower than they should be. Watch out for Intel, it is going to show us how we can trade stocks in this earnings season.