June 1st, 2022 Watch List

Stocks closed in the red to start the week, with the S&P finishing Tuesday down .63%. Asia markets closed mixed overnight while Europe indexes are flat as I write this. U.S. futures are pointing to a slightly higher open, the Dollar, Yields, and Oil are up while Gold is lower.

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-33/

Stocks gave back some of last weeks gains on Tuesday, as inflation fears came back to the forefront, and as folks took profits in the names that soared to end last week. Time will tell if yesterday was just some consolidation before the next leg of this bounce, or the start of another move back to new lows. Hoping the latter. Yesterday POTUS met with Fed Chair Powell after writing an opinion piece in the WSJ outlining his plan for fighting inflation(while trying to pat himself on the back at the same time). Not going to go out on a limb and say these are the signs peak inflation has already hit, but seems like it. That $410 level on the SPY provided some strong support yesterday. If the holds, think $420 test comes soon:

BPT rallied up to $21 after the open yesterday and I used the opportunity to lock some of my June calls in for nearly 100%. Think it is only a matter of time before this name goes parabolic and breaks into the mid-high $20s. Will look to close the last of my June strikes in the coming days and hold my July strikes:

IBM came .17 away from testing that $140 resistance from Mid-April - all this in the face of a weak market. Once that $149 breaks the $150s should come rather quickly:

ZYME broke into the $7 in the mid-afternoon before finding some sellers to close at $6.72. Still looking to close some of the July calls to cover costs and ride the rest:

SAGE and BIIB announced positive data from their Phase 3 SKYLARK study for Postpartum depression. I have experienced it first hand so know there is a huge addressable market and need for a solution - which is why SAGE has always been a name I have on radar. Have to think at some point BIIB just buys out SAGE, as they already have a 10%+ stake in the name. May look at some later dated calls for a move into the $40s in the coming days:

For some reason I thought APPS reported earnings today, instead they reported yesterday after the close and it was not good. They missed on revenue and EPS and issued some conservative guidance. It seems every earnings report prior they smashed estimates and the stock still fell... maybe this is will market the bottom. Not going to go all-in on calls but may nibble some for a move back into the green this morning and maybe $30+ in the next week or two. APPS is still a great growth story IMHO:

Still eyeing HSKA, ROKU, U, and possibly SPOT calls as well if the market finds support today.

Here are the analyst changes of note:

Digital Turbine price target lowered to $40 from $70 at Macquarie
Macquarie analyst Tim Nollen lowered the firm's price target on Digital Turbine (APPS) to $40 from $70 and keeps an Outperform rating on the shares after the company reported fiscal Q4 net revenue growth and adjusted EBITDA below his forecast. He now models revenue growth slowing into the mid-teens percentage range for FY23. However, Nollen noted that management said investor worries about any announcements to come from Apple (AAPL) at its developer conference next week should have minimal impact as they said iOS related revenue is only 20% and only 5% is tied to IDFA

Digital Turbine price target lowered to $40 from $117 at Oppenheimer
Oppenheimer analyst Timothy Horan lowered the firm's price target on Digital Turbine to $40 from $117 and keeps an Outperform rating on the shares. Digital Turbine became the latest company to flag a sudden downshift in customer demand, indicating it is "not immune," the analyst notes. Its Q4 adjusted EBITDA and non-GAAP EPS were at the low end of guidance, 3% below modeled, as On Device Media revenue surprisingly contracted 10.8% sequentially, he adds

Lovesac price target lowered to $124 from $135 at DA Davidson DA Davidson analyst Tom Forte lowered the firm's price target on Lovesac to $124 from $135 but keeps a Buy rating on the shares. The analyst cites slower growth in the home category as reflected in U.S. retail sales data, though he also remains positive on the stock as "the current share price may already reflect his lower estimates". Forte further states that he is confident in Lovesac's ability to grow the business, despite the current economic challenges

Franklin Resources price target lowered to $27 from $29 at BMO Capital
BMO Capital analyst James Fotheringham lowered the firm's price target on Franklin Resources to $27 from $29 and keeps a Market Perform rating on the shares. The analyst cites the earnings accretion expected from the company's Alcentra acquisition, along with the negative impact of market depreciation thus far in the quarter. Fotheringham adds that while he commends the company's commitment to growth-accretive deals, he also sees group-wide flows remaining negative next year
Ralph Lauren price target lowered to $151 from $171 at Cowen
Cowen analyst John Kernan lowered the firm's price target on Ralph Lauren to $151 from $171 and keeps an Outperform rating on the shares. The analyst sees its current valuation as cheap and estimates the business could return 50% of its current 6.9B market cap in share repurchases and dividends through 2027

Amgen price target raised to $290 from $285 at Oppenheimer
Oppenheimer analyst Jay Olson raised the firm's price target on Amgen to $290 from $285 and keeps an Outperform rating on the shares. The Phase 2 OCEAN(a)-DOSE study of olpasiran in adults with elevated Lipoprotein(a) met the primary endpoint and could support a Best-in-Class profile, in the analyst's opinion. He believes top line results demonstrate reduction from baseline Lp(a) up to 90% at week 36 and greater than 90% at week 48 with no new safety concerns
Sage Therapeutics data better than Street expectations, says Piper Sandler
Piper Sandler analyst Yasmeen Rahimi says the SKYLARK data this morning from Sage Therapeutics (SAGE) and Biogen (BIIB) came in better than Street expectations. Given that there are already an estimated 500,000 women with postpartum depression, these data could help increase awareness and lead to an even bigger addressable market, Rahimi tells investors in a research note. The analyst now has increased conviction for zuranolone and expects the "pressure to be off" shares of Sage. She keeps an Overweight rating on the name with a $100 price target
Benchmark remains 'skeptical' on any sustained Netflix recovery
Benchmark analyst Matthew Harrigan said that "even as bulls are talking up short-term technicals," he remains "skeptical" on any sustained Netflix stock recovery given his view of Netflix as "now effectively a media name." Management needs to contain overall costs and execute better on its content spending, but it may be difficult to curtail spending in the mature U.S. market as competition gains traction while aggressively investing in Asian growth markets, argued Harrigan, who keeps a Hold rating on Netflix shares

And here is what I am watching today: APPS, HSKA, ROKU, U, SPOT, U, EXPE, AI, TREE, TNDM, SQ, YOU, PLCE, and MELI.

Let's have a great day!


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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