Rookie Earnings Season Fears

I am anxiously awaiting earnings announcements from Coach(NYSE-COH) next Tuesday, and Microsoft(NASDAQ-MSFT) next Thursday. As I mentioned before, this is the first round of earnings announcements since I have owned these stocks (since I have owned any stocks in fact), so it's definitely got me nervous.

Both stocks are not in a great position for me. Coach has rebounded nicely this week, and sits only 0.3% below where I purchased it, but Microsoft has actually lost 7.7% since I purchased my first shares. I have no idea which way the earnings will swing the stocks. With the current prices, bad news for either will immediately leave me with losses. If that's the case, I don't know how I would decide whether or not to ditch the stock.

I believe in the value of Microsoft, thus regardless of what happens I think I have the guts to hang onto it. With Coach, it may have been a more speculative move. They have had an amazing growth run in the past several years, and the price/earnings multiple shows expectations of more of the same. Coach hasn't released any forecasts since before the hurricanes, so there is a slight concern they could disappoint. I'm optimistic the opposite will be true though, and good numbers could mean good things for my stock.

I guess this is what stock investing is made of, and if I intend on holding my stocks for years rather than months (as was the plan), I should get used to earnings announcements. But for this inaugural earnings season, I am definitely paying very close attention.