Earnings Breakdowns for This Week 5-16 Through 5-20
Including $DE $CRM $WMT and more
What a great start to the week as fears over the 'Fiscal Cliff' turned into hope for a resolution. Oversold stocks flew, led by AAPL. There were quite a few in the chatroom who nailed some calls in the morning, and sold them up 100-200%. We are now solidly over the 200dma on the SPY, a line in the sand for me. I still think we head to new highs sometime in the next few months, and will play accordingly.
There were some nice earnings after hours with Vinnybotz from the chatroom nailing KKD, and others playing QIHU for the big beat. This morning DSW smashed earnings, while BBY and HPQ missed and are down sharply. Futures are flat to green and I would think we melt higher today.
What I am watching today:
|Stock Ticker||Call/Put||Strike||Expiration||Closing Price||Entry Price|
Will try for some lottos with CRM. Been saying CRM is a $200 stock for over a year, maybe now it starts heading there. DSW smashed earnings and still shows great growth. DSW should head to new highs over $69 so lotto DEC calls maybe worth a shot. Still have CAT on the list for some $85 calls, and think she breaks if we are green today. 85s only .22.
Still holding BPT 85s and March 90s, like for the continued bounce. Also have NFLX and SINA.
Lets have another great day. Dont forget the class this afternoon : https://www.optionmillionaires.com/2012/free-webinar-open-to-all-members-guests-candlestick-analysis-with-chris-d/
It seems like just yesterday when the world thought Europe's financial system was going to collapse on the weight of its severe debt issues. We posted this in june : https://www.optionmillionaires.com/2012/the-bizzaro-jerry/ . Fast forward 3 months and we are now over 4 year highs. Amazing! Are we better off now? Hard to say, but i guess the market thinks we are.
We had the August job numbers this morning. Unemployment dropped to 8.1% but less jobs were created then expected. Either way I think we ramp on these numbers. We are in a HEADS Bulls win TAILS bears lose environment.
I think we have some laggards follow through today, although I wouldnt call a 1%+ move being a laggard, but they did trail the indices. AAPL and PCLN are both on my early morning lotto radar for some calls today. PCLN was upgraded to buy and should see a 3-5%+ move. AAPL needs to break $680, then i think it flies to $690... Will look for $625/630 calls on PCLN and $685/690 on AAPL - PURE LOTTO PLAYS!
Others on watch today : CRM for the 150 break.
Still holding CMG calls and will add $310 calls on $305 break for lotto.
ISRG is another lotto. Will watch $500 calls for lotto.
Thats all for now. Lets finish the week GREEN!!!
It was just this past spring when LNKD (LinkedIn Corp) had it's IPO, and soared over 100% from it's offering price of $45s. It was a spectacular day, and LNKD(LinkedIn Corp) enjoyed a few weeks of volatile trade above and below the $100 mark. Of course there were many skeptics, who thought LNKD(LinkedIn Corp) current fundamentals didnt warrant the lofty share price. Actually, I think there was a line forming for those waiting to borrow shares to short. Over the course of the next few months, LNKD (LinkedIN Corp) continued to trade in a wide range, from $60 to $100. The issue with LNKD(LinkedIn Corp) was with it's valuation, as the company only generated $93 million in revenue as per it's initial filing, but had a market cap in the Billions. Couple that with the secondary offering of 8.75 million shares in November, and you have a stock poised for a sell-off... which it did. As with any stock that has seen it's share price fall, many LNKD(LinkedIn Corp) shares were in the hands of short sellers. Which brings us to last week.
LNKD(LinkedIn Corp) reporting earnings that easily surpassed analysts estimates. It turns out the secondary offering that is usually a red flag, was actually a good thing. The company is growing so fast, they need money to continue the growth.
And that is the key word here... GROWTH. LNKD(LinkedIn Corp) currently has a P/E ratio of 769! One look at that number, and the only word that comes to most peoples minds is "OverValued". We see the LNKD(LinkedIn Corp) P/E ratio and one company comes to our mind... "SalesForce.com".
The same company that analysts said was a bloated stock with weak fundamentals. The same stock that Analysts continued to give lower price targets even as the stock soared to new highs. As with many sectors and companies, there are always parallels that can be made. And one thing for sure, is we think there will be many parallels made between CRM and LNKD in the coming months. And you heard it here first at OptionMillionaires.
We fully expect LNKD(LinkedIn Corp) to trade above $100 in the very near term.
Disclosure: We are holding $92.50 and $95 Feb 18th calls.