The Magic of Forward Earnings about to hit Markets.
Every year sometime in the 1st qtr companies forward earnings switch to the following year.
For instance TRW right now still shows Dec. 2011 as current year and 2012 as forward earnings. Soon though as Q4 2011 is out of the way, it will jump to forward earnings 2013.
Thats when people will realise that this company is trading at extreme low levels compared to forward earnings.
Today TRW is down -0.38 (35.49) on extremely low volume of only 137k while its average volume is 1.6M, this tells you that sellers are exhausted and a reverse trend is in the making.
Analysts have also just recently said that auto parts suppliers will do better than auto makers.
Keep your eyes on TRW because it is on the verge of rebounding from the nearly -50% drop it had in 2nd half of 2011.