2014-05-23 Smart Money Report (NMM) (UBNT)
Smart Money Report
- DXJ- 10,000 Nov. $50 calls were purchased for $1.21 each, against open interest of 937 contracts. There was a large buyer of 5,418 Nov. $48 calls yesterday for $1.69 each. The Japanese Hedged Equity ETF is breaking out above the $47 resistance level today.
- NMM- 3,500 Dec. $17.50 puts were purchased for $1.35-$1.40 each, against open interest of 99 contracts. The put to call ratio is 92:1. Put activity is 59x the average daily volume. The stock trades at a P/E ratio of 22.93x (2015 estimates), PEG ratio of 1.20x (2015 estimates), 5.2% revenue growth (19.3% this year), and has an average analyst price target of $19.63. The long-term uptrend on the weekly chart remains intact. This is likely a hedge against a long stock position given the fundamental and technical support behind shares of Navios Maritime Partners.
- SWK- 2,200 June $87.50 calls were purchased for $0.83-$0.90 each, against open interest of 3,461 contracts. The call to put ratio is 36:1. Call activity is over 2x the average daily volume. Implied volatility rose 4.1% to 15.66. The power tool maker trades at a P/E ratio of 13.89x (2015 estimates), PEG ratio of 0.90x (2015 estimates), 5% revenue growth (4.3% this year), P/S ratio of 1.20x, and has an average analyst price target of $90. Shares of Stanley Black & Decker are poised to retest the September highs of $91.62 over the next 1-2 months.
- UBNT- The June $36/$38 call spread was put on 4,000 times for a $0.50 debit. Volume was above the open interest in both options. The call to put ratio is 37:1. Call activity is over 8x the average daily volume. Shares of Ubiquiti Networks trade at a P/E ratio of 14.92x (2015 estimates), PEG ratio of 0.97x (2015 estimates), 18.9% revenue growth (76.9% this year), and has an average analyst price target of $51. On 5/13, Raymond James upgraded the stock to a strong buy with a $50 price target. If the stock is able to close above the $35 resistance level, look for a retest of the 50-day EMA (currently $39.52).
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