Buy Shutterfly (SFLY) Into Earnings?


Shutterfly(SFLY) is a stock i have talked about(on the Week Ahead Webinar and in the Chatroom) and traded quite a bit over the past few years. It's a stock I like and think it continues to be under-appreciated in the investment community. Similar to OpenTable(OPEN), its  leader in a niche market that has competition yet continues to be extremely resilient, an example of which is it's 51 straight quarters of YOY revenue growth.

2013 saw Shutterfly(SFLY) grow revenues 22%, and the outlook for 2014 is no different, with a forecast of 17% growth.  Despite the continued growth, the stock is down over $20 from its $59.93 high in August of 2013 erasing $780 million from the companies valuation, which currently stands at $1.5 billion.The companies expects to do $900-$920 million in revenues in 2014, which means it currently trades at just 1.6x's revenue.

The stock is down 22% to start 2014, and think it provides a nice risk/reward scenario for some out of the money June calls. Earnings after the close could also be the catalyst to get the stock back on course.

SFLY 4-30-14

Happy Trading!





JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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