Posts Tagged ‘swing trading’

Whole Foods Market Musings $WFM

October 28th, 2015

At the time of this post $WFM is $30.19 with a market cap of $10.8B. Its 52-week price range is $29.97 to $57.57.

We like this stock for day/swing trades (long) and expect its floor to be $29.50. For the short term we expect it to trade between its floor and $35.00.  We are long the stock with covered calls ($33) for downside protection.

Whole Foods is a growth stock with a trailing PE of 18.3.  Its current dividend yield is 1.7%. Short interest is 8% and the fiscal 2015 ER/conference call is scheduled for November 4th (after market close).

$WFM has been been beaten up due to concerns about competition from Kroger $KR and from recent public relations issues regarding over charging on certain items in a limited number of NY stores.

Twitter Musings – Ride the new Tech Wave

August 10th, 2015

Twitter is down over 50% from its 52-week high.  At $27.04, some would say its a screaming buy.

Today’s new killer app is a camera with a real-time feed (e.g. Periscope).  Every smart phone/tablet/body camera/drone has been transformed into a TV camera.  Every person on earth can now live-broadcast to the world.

Twitter is positioned very well to ride this new killer app wave into the future.  The “TV camera everywhere” future will be very disruptive to the TV, media, social media, and telecommunications space.

Microsoft saw this coming early and paid $8.5B in 2011 for Skype.  Twitter is currently valued at $17.7B.

Google, Apple, Microsoft and Amazon have got to be paying attention.  Facebook is.

 

TWTR Twitter Musings

July 19th, 2015

At the time of this post TWTR is $35.67 and we are long Twitter.

The 52 week price range is $33.51 to $55.99 and its market cap is $24B.  We like this stock because it seems to have established a floor.  Its brand and usage are global and growing.  The short-term trading range appears to in the $30s with a pivot price of $35.  The earnings announcement is scheduled for July 28th.  A covered call strategy may be used on this position prior to the earnings release.