Priceline (PCLN) is one of the few remaining "momentum stocks" that hasn't succumb to it's lofty expectations. The last few months have seen many of the high fliers, come crashing down to reality. Stockw like: NFLX, TZOO, OPEN, SINA have all been a victim of their own success. Driven to insane heights, only to come down just as hard on some fundamental or news worthy item that the street didn't like.
Priceline has avoided that fate, for the time being. The company has actually reported earnings that have demolished expectations, and almost doubled its EPS year over year for it's last Quarter.
With most analysts price targets at $610 and above, one would think PCLN would have lifted off post earnings and hit all-time highs. The lift-off did happen post earnings, for a day. Then the sell-off began. PCLN topped out at a little over $550, and a close to a month later, sits at $445.It also bounced off it's lower bollie band today.
Retail traders are not responsible for the sell-off, and looks more like hedge funds or institutional investors, taking some of their position off the table. Goldman Sacks also put the put the internet sector on it's buy list today sans Yahoo.
Normally that would be enough to prevent the 4% haircut in PCLN shares today, but Goldman Sacks has lost their luster.
We do like PCLN here for some action on the calls side. Catching options on the right side of the trade in a stock trading in the hundred dollar level, can equal huge gains.
Make sure you sign up for our mailing list or be in the chat room for strike price and dates.