Traders keenly review companies’ quarterly reports in order to assess how the firm has delivered on targets during the previous three months. That being said, it is history that they report on – the bigger interest lies in targets and aspirations for the future, so it is the forward guidance that plays a larger part in how the market values a company.
The next set of figures for BSkyB, due out on the 30 January, will show how much of an impact the revitalised efforts of BT are having on its profits. The irony that the broadcasting company is under pressure from another firm using sport as its biggest asset will not be lost on most.
What may have more of an impact on the share price over the next quarter is the increasing press speculation that BSkyB may itself become targeted for further investment. The name being whispered is Vodafone which, on the back of selling Verizon, has an abundance of cash, and is in need of a suitable home to invest in. As far as speculation is concerned, however, the premise that 2+2=4 does not always hold up, and investors should be conscious that speculation as much as reported figures could be a short-term driving force behind market moves.
A look at the chart would suggest that ultimately an effort will be made to fill the gap up to 920p, however any traders thinking of going long would be wise to consider employing a stop on long positions – especially with figures just round the corner.