February 20th, 2020 Watch List

Good morning!   Stock futures are lower to start the day.   Yesterdays trading action sent the S&P500 and NASDAQ to fresh all time record highs.

This is UPB... JB again will be out for most of the day and tomorrow as well.  Some well deserved R&R.

You can read yesterdays watchlist to find out what I think about the markets here.



and here are todays reads, open interest, news etc,

Thursday Morning Reads


$FSLY  reports earnings tonight.  I locked in 2/3rds of  my position on yesterdays  7% rally.  I'll likely hold the rest into the report.  The stock crumbled after reporting earnings last quarter.. so be wary of that.

$TLRY  strong yesterday.  I locked in 1/2 of my calls and look to lock in another 1/4 soon after the open today.    The chart looks to be turning again and momentum gets strong with this one.  Perhaps another move  over $20 is in the cards.

$DBX reports after the bell today. I got some  $19.50 calls for the report.  I think a well recived report could send this stock back over $20.   Of course it could easily go the other way.  I like the long term chart break.  Let's see what happens tonight.

$MMM I was able to get half my calls out to cover cost before the stock pulle d back.  I'll likely hold whats left into tomorrows session.

I'll be looking for a few trades today, probably more of the buy the dip trade than anything else.  With futures modestly lower a mid-day dip buy may be in the cards.

Notable Research Calls For Thursday, February 20
  • Stifel upgraded La-Z-Boy (LZB) to Buy, surprised stock did not react more favorably to Tuesday's "good" print.
  • Citigroup upgraded Analog Devices (ADI) to Buy from Neutral as they feel the semiconductor industry recovery will benefit ADI, among others, stating the company-specific issues seem largely gone by.
  • Tivity Health (TVTY) drew no less than four downgrades this morning following last night's Q4 miss, unimpressive guidance.
  • Wells Fargo moved to the sidelines on Advanced Micro (AMD), says stock now approaches levels which hold a balanced risk/reward.
  • BofA/Merrill downgraded CenturyLink (CTL), says with Consumer strategic review in the rear view mirror, potential for squeeze to the upside seems to have dissipated.
  • Societe Generale downgraded Workday (WDAY) to Sell from Hold.
  • PTC Therapeutics (PTCT) downgraded to Sector Perform at RBC Capital Mkts on valuation, as they feel positive expectations now more baked in; tgt lowered to $60.
  • Cowen started coverage on Schneider National (SNDR) with a Market Perform, $21.50 tgt (~5% upside) given their view that multiple expansion may occur over time, but current valuation appears fair.
  • BMO Capital Markets initiated coverage on Exelon (EXC), Eversource Energy (ES), American Electric (AEP), Ameren (AEE), Vistra Energy (VST), NiSource (NI), NextEra Energy Partners (NEP), and NextEra Energy (NEE) with Outperform recommendations; Xcel Energy (XEL), Sempra Energy (SRE), Public Service (PEG), NRG Energy (NRG), Entergy (ETR), Dominion Energy (D), and CenterPoint (CNP) with Market Perform recommendations.

Have a great day everyone!!

Movers this morning --->>

Gapping up
In reaction to strong earnings/guidance

  • STMP +35.1%, ZG +16.5%, DPZ +16%, CYH +14.5%, CAR +11.9%, TXMD +8.8%, CSTM +8.5%, UCTT +7.8%, PRDO +7.4%, XEC +7.3% (also increases dividend), MANT +7%, SNN +6.9%, COMM +6.8%, TRN +6.4%, CGEN +6.3%, MX +6%, i +6%, IMAX +5.1%, SEDG +4.4%, KL +3.6%, TSLX +3.5%, GDOT +3.3%, AGI +3.1%, PXD +2.7% (also increases dividend), MASI +2.6%, LASR +2.6%, MOS +2.4%, HFC +2.3%, ALB +2.2%, SUN +2.2%, FMS +2.2%, EPAM +2.1%, HCC +1.9%, SNBR +1.9%, SYNH +1.9%, SM +1.8%, NCLH +1.7%, FOCS +1.6%, TRGP +1.5%, OGS +1.4%, OVV +1.4%, AROC +1.3%, AEP +1.3%, AROC +1.2%, OIS +1.1%, AXTI +1%

M&A news:

  • IOTS +55.2% (to be acquired by Dialog Semiconductor for $12.55 per share)
  • ETFC +24.6% (to be acquired by Morgan Stanley in all-stock transaction valued at approx. $13 bln)
  • MPC +4.2% (Seven & I Holdings is in discussions to purchase MPC's Speedway gas stations for $22 bln, according to Bloomberg)
  • ACM +1% (attributed to M&A speculation)

Other news:

  • RMAX +3.3% (increases dividend)
  • FL +0.7% (increases dividend)
  • ELAN +0.5% (signs deal with MRK to divest Vecoxan for $55 mln)

Analyst comments:

  • LZB +1.5% (upgraded to Buy from Hold at Stifel)
  • ADI +1% (upgraded to Buy from Neutral at Citigroup)

Gapping down
In reaction to disappointing earnings/guidance

  • TVTY -37.6% (also CEO resigns), SIX -17.7%, OSUR -10.8%, NVTA -9.1%, LOPE -9.1%, VIAC -7.8%, CPRT -7.3%, TEN -7.2%, SAM -6.9%, WIX -6%, MD -5.6%, AAN -5.6%, RGEN -5.2%, SPTN -4.9%, BCOV -4.3%, CDE -3.8%, CLF -3.7%, QTWO -3.2%, CAKE -3.1%, RCM -3.1%, H -3%, SNPS -2.9%, RETA -2.7%, VMI -2.2%, CONE -2.1%, IAG -1.9%, PE -1.8%, JACK -1.8%, SO -1.8%, PAAS -1.7%, ICLR -1.3%, CAMT -1.2%, GIL -1.1%, VTR -1.1%, VC -1%

M&A news:

  • MS -3.6% (to acquire ETFC for $13 bln)

Other news:

  • BTAI -17.6% (prices offering of 2 mln shares of common stock at $32.00 per share)
  • AXGT -8.4% (prices offering of 14,031,336 shares of common stock at $3.75 per share)
  • HRTX -5.9% (announces extension of review period for NDA for HTX-011; new PDUFA goal date is June 26)
  • IRT -5.6% (announces 8.5 mln share offering)
  • TU -3.1% (stock offering)
  • TEVA -2.4% (trials for deutetrabenazine fail to meet the primary endpoint)
  • APAM -1.3% (stock offering)
  • ENDP -1% (names new CEO)

Analyst comments:

  • BE -4.9% (downgraded to Mkt Perform from Outperform at Raymond James)
  • CTL -2.5% (downgraded to Underperform from Neutral at BofA/Merrill)
  • AAXN -1.5% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
  • AMD -0.7% (downgraded to Equal Weight from Overweight at Wells Fargo)


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 optionmillionaires.com, 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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