I'm not sure if this Q's earnings will be enough to cause the stock to skyrocket even if it's better than expect. My feeling is we'll have to hold onto the stock until earnings after the holidays to get a nice bump up.
I disagree, if LF reports a profit instead of the estimated loss, this thing will rocket because that will calm a lot of the fears that LF is just a cyclical business that is relient on the holidays for sales. Indeed, they are relient on the holidays to sell the hardware but if they report a profit for Q1, that will be proof that there is something to the content business. Personally, I'm not expecting a profit, but I will still hold a chunk at an average of 8.10 through earnings just incase. I don't see it falling much unless it starts to move up as earnings approaches.
In a way this is a VERY important quarter to them because it is where we will see just how lucrative the content business has been for them. That being said, I'd still sell on any post-earnings pop after what I've seen happen almost every single earnings I have witnessed (the after hours pop followed by the drop the next day) I will sell after hours on any pop over 10% (if it comes).