Temple-Inland Rises in Anticipation of Positive Earnings

In the early stages of bull markets, certain stocks will often make substantial moves before their earnings power becomes visible. In these situations, the price action clearly displays the market’s discounting mechanism at work – in effect, stocks begin to rise as businesses bottom out, already anticipating better days of positive growth ahead.

With this in mind, we established a small probe position in packaging producer Temple-Inland Inc. (TIN) late last week. Earnings are slated to come out Thursday, July 23^rd. We like this trade for the following reasons: