Social Media Stocks Sector Analysis: FB, TWTR, LNKD, IACI, WB

This was originally published on See It Market on June 2nd

In this post I want to take an intermediate-term and longer-term look at the charts of five social media stocks. The first three that I will look at are household names that you hear about ton a dailybasis (and probably use on personal level as well): Facebook (FB), Twitter (TWTR), and LinkedIn (LNKD). But stocks like IAC/InterActiveCorp (IACI) and Weibo (WB) are smaller companies in the sector that are worth paying attention to – both social media stocks have big growth potential.

IACI is the $6B owner of dating sites like Match, OkCupid, and Tinder. They also operate in search via About.com, Ask, Dictionary.com, and Investopedia. As well, they own the popular video-sharing subscription service called Vimeo.

Then there is Weibo, a $3B … Read More »

Don’t Look For a Rebound In RCS Capital Anytime Soon (RCAP)

Notes: RCS Capital’s earnings estimates continue to be slashed month after month (down 11%+ in three months for 2015), but they’ve still found a way to disappoint in recent quarters. January selling agreements were down to 1,132 vs 1,151 in January 2014. Overall demand for non-traded REITS fell 7.6% for the company in 2014 as accounting issues were revealed at American Realty Capital Properties (ARCP had previously had a deal to sell Cole Capital to RCAP). More than 12.2M shares are currently sold short (70M+ shares outstanding).

RCS Capital (RCAP) Options Trade Idea

Buy the (RCAP) Oct $5/$9 bear put spread for a $1.40 debit or better

(Buy the Oct $9 put and sell the Oct $5 put, all in one trade)

Read More »

Is Tractor Supply A Buy Ahead Of Earnings? (TSCO)

Notes: The $12B operator of retail farm and ranch stores has more than 1,380 stores located throughout the United States. Tractor Supply trades at a P/E ratio of 28.26x (2015 estimates), price to sales ratio of 2.06x, and a price to book ratio of 9.11x. Earnings are projected to increase 15% annually and sales are projected to rise 10% annually over the next couple of years. About 44% of revenues in 2014 came from their livestock and pet categories. When you put a PEG ratio of 2x on the stock it puts the price at $92, which is probably conservative since the company has beat EPS estimates by $0.05 each in the last two quarters. On February 25th, Barclays raised their price target to $110 from $92 (overweight … Read More »

Call Buyers See 8%+ Upside In Abbott Labs By August (ABT)

Notes: Back in February, Abbott Laboratories sold part of their generic drug business to Mylan NV (MYL) for $5.3B in February. With earnings projected to decline 6% this year, I would look for more deals to come from $70B pharmaceutical company (whether it is via shedding more assets or acquiring smaller competition that are accretive to earnings). They had about $4.4B in cash and short-term investments to start off of the year (not including the recent sale). ABT shares trade at a P/E ratio of 19.51x (2016 estimates), price to sales ratio of 3.48x, and a price to book ratio of 3.27x. Q1 earnings are due out on April 22nd (moved higher after earnings on 5 out of the last 7 reports).

Abbott Laboratories (ABT) Options Trade … Read More »

Call Buyers Look For New Highs In Omnicare Soon (OCR)

Notes: On February 25th, Omnicare reported Q4 EPS of $0.96 (beat estimates by a penny) on revenue of $1.63B vs the $1.61B Wall Street estimate (6% year over year increase). The Specialty Care Group segment is driving the growth as sales jumped 21% to $443M in the fourth quarter (third straight quarter of high double digit growth). Shares of the $7.6B healthcare services company trade at a P/E ratio of 18.85x (2015 estimates), price to sales ratio of 1.17x, and a price to book ratio of 2.94x. Earnings are projected to grow in the low double digit range and sales in the mid-single digit range annually this year and in 2016. Following the latest quarterly report (Q1 earnings out on April 29th), Cowen raised their price target … Read More »

Call Buyers Look For 10%+ Upside In KB Home (KBH)

Notes: On 6/27, KB Home (KBH) reported Q2 EPS of $0.27 vs the $0.21 estimate and revenue of $565M vs the $557.2M estimate. They delivered 1,797 homes in the quarter (down 3% year over year) and had an average selling price of $319,700.

KB Home (KBH) Options Trade Idea

Buy the (KBH) Oct $17 call for $1.25 or better

Stop loss- None

1st upside target- $2.00

2nd upside target- $3.00

Summer Sale: From now until the end of August, annual memberships are only $225 (25% off of the regular $299.95 price). This is available for new and existing members. Check out our updated 2014 options performance page here (all stock trades are posted on the Weekend Market Updates).

1 On 1 Options Mentoring: Learn more about … Read More »

Free Trade Of The Day Featuring B/E Aerospace (BEAV)

Notes: B/E Aerospace (BEAV) is set to announce Q2 earnings on Wednesday, July 23rd. Back in June the company announced they will split into two separately traded companies (there had first been talk of the company putting themselves up for sale).

B/E Aerospace (BEAV) Options Trade Idea

Buy the (BEAV) Aug $95/$105 call spread for a $3.00 debit or better

(Buy the Aug $95 call and sell the Aug $105 call, all in one trade)

Stop loss- None

1st upside target- $6.00

2nd upside target- $9.00

Summer Sale: From now until the end of August, annual memberships are only $225 (25% off of the regular $299.95 price). This is available for new and existing members. Check out our updated 2014 options performance page here (all … Read More »

Free Trade Of The Day Featuring Linear Technology (LLTC)

Notes: Linear Technology (LLTC) is set to announce Q4 earnings on Tuesday, July 22nd.

Linear Technology (LLTC) Options Trade Idea

Buy the (LLTC) Aug. $48 call for $1.50 or better

Stop loss- None

1st upside target- $3.00

2nd upside target- $4.50

Summer Sale: From now until the end of August, annual memberships are only $225 (25% off of the regular $299.95 price). This is available for new and existing members. Check out our updated 2014 options performance page here (all stock trades are posted on the Weekend Market Updates).

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.

Free Trial: If you would like to know more about premium … Read More »

Free Trade Of The Day Featuring Melco Crown Entertainment (MPEL)

Notes: Melco Crown Entertainment (MPEL) is set to announce Q2 earnings in early August.

Melco Crown Entertainment (MPEL) Options Trade Idea

Buy the (MPEL) Aug. $35/$40 call spread for a $1.80 debit or better

(Buy the Aug. $35 call and sell the Aug. $40 call, all in one trade)

Stop loss- None

1st upside target- $3.60

2nd upside target- $4.80

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: Join now to gain access to the all of the … Read More »

Free Trade Of The Day Featuring Five Below (FIVE)

Five Below (FIVE) Options Trade Idea

Buy the (FIVE) Aug. $40/$45 call spread for a $1.50 debit or better

(Buy the Aug. $40 call and sell the Aug. $45 call, all in trade)

Stop loss- None

1st upside target- $3.00

2nd upside target- $4.50

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: Join now to gain access to the all of the stock watchlist updates (30-50 stock and option trade ideas like the one above every week), unusual options activity … Read More »

Free Trade Of The Day Featuring JPMorgan Chase (JPM)

Notes: JPMorgan Chase (JPM) shares go ex-dividend on Tuesday, July 1st. The $0.40 dividend will be payable on Thursday, July 31st. They will report Q2 earnings on Tuesday, July 15th.

JPMorgan Chase (JPM) Options Trade Idea

Buy the (JPM) July 19 $57.50 call for $1.20 or better

Stop loss- None

1st upside target- $2.50

2nd upside target- $3.50

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: … Read More »

Free Trade Of The Day Featuring Hertz Global (HTZ)

Notes: Hertz Global (HTZ) is set to announce Q1 earnings on Monday, June 23rd.

Hertz Global (HTZ) Options Trade Idea

Buy the (HTZ) Aug. $30 call for $1.25 or better

Stop loss- None

1st upside target- $2.00

2nd upside target- $3.00

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: Join now to gain access to the all of the stock watchlist updates (30-50 stock and option trade ideas like the one above every week), unusual options activity reports, earnings trade … Read More »

Free Trade Of The Day Featuring Omnicare (OCR)

Notes: Omnicare (OMC) is set to announce Q2 earnings on Monday, July 21st. The stock has moved higher after earnings on three out of the last five reports.

Omnicare (OCR) Options Trade Idea

Buy the (OCR) Aug. $70 call for $1.00 or better

Stop loss- None

1st upside target- $2.00

2nd upside target- $3.00

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: Join now to gain access to the all of the stock watchlist updates (30-50 stock and option trade ideas … Read More »

Free Trade Of The Day Featuring KB Home (KBH)

Notes: KB Home (KBH) is set to announce Q2 earnings on Friday, June 27th. The stock has moved higher after earnings on four out of the last seven reports (higher on two out of the last three reports). They’ve beat consensus EPS estimates on seven out of the last eight quarters.

KB Home (KBH) Options Trade Idea

Buy the (KBH) July $17 call for $0.60 or better

Stop loss- None

1st upside target- $1.20

2nd upside target- $2.00

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.

Free Trial: If you would like to know more about premium content or would like a free trial of the service, … Read More »

Free Trade Of The Day Featuring The Financial Select Sector SPDR ETF (XLF)

Financial Select Sector SPDR Fund (XLF) Options Trade Idea

Buy the (XLF) Dec. $23/$25 call spread for a $0.70 debit or better

(Buy the Dec. $23 call and sell the Dec. $25 call, all in one trade)

Stop loss- None

1st upside target- $1.40

2nd upside target- $1.95

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: Join now to gain access to the all of the stock watchlist updates (30-50 stock and option trade ideas like … Read More »

Free Trade Of The Day Featuring Kosmos Energy (KOS)

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

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Free Trade Of The Day Featuring Quality Systems (QSII)

Notes: Quality Systems (QSII) is set to announce Q4 earnings on Thursday, May 29th. The stock moved higher after earnings on the last two reports.

Quality Systems (QSII) Options Trade Idea

Buy the (QSII) July $17.50/$20 call spread for $0.65 debit or better

(Buy the July $17.50 call and sell the July $20 call, all in one trade)

Stop loss- None

1st upside target- $1.30

2nd upside target- $2.25

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: Join now to gain access to the all of the stock watchlist updates (30-50 stock and option trade ideas like the one above every week), unusual options activity … Read More »

Free Trade Of The Day Featuring New Gold (NGD)

New Gold (NGD) Options Trade Idea

Buy the (NGD) Jan. 2015 $6 call for $0.50 or better

Stop loss- None

1st upside target- $1.00

2nd upside target- $1.50

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: Join now to gain access to the all of the stock watchlist updates (30-50 stock and option trade ideas like the one above every week), unusual options activity reports, earnings trade ideas, weekend market updates, Premium Twitter feed, and more! All for just $29.95/month or save by purchasing an annual subscription. Join me and the other ORM traders in the chat room today!

1 On 1 Options Mentoring: Learn more about … Read More »

Free Trade Of The Day Featuring Lorillard (LO)

Notes: Lorillard (LO) shares go ex-dividend on Wednesday, May 28th. The $0.615 dividend will be payable on Tuesday, June 10th.

Lorillard (LO) Options Trade Idea

Buy the (LO) June $57.50/$62.50 call spread for a $1.20 debit or better

(Buy the June $57.50 call and sell the June $62.50 call, all in one trade)

Stop loss- None

1st upside target- $2.50

2nd upside target- $3.75

3rd upside target- $4.75

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: Join now to gain access to the all of the stock watchlist updates (30-50 stock and option trade ideas like the one above every week), unusual options activity … Read More »

S&P 500 Percent of Stocks Above 50 Day Moving Average (SPXA50R)

Free Trial: If you would like to know more about premium content or would like a free trial of the service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: Join now to gain access to the all of the stock watchlist updates (30-50 stock and option trade ideas like the one above every week), unusual options activity reports, earnings trade ideas, weekend market updates, Premium Twitter feed, and more! All for just $29.95/month or save by purchasing an annual subscription. Join me and the other ORM traders in the chat room today!

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.