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Tuesday, November 10th, 2009
1:15pm (EST)
Priceline.com (PCLN, $205.11, up $31.38) is up 18% today after releasing third quarter earnings that easily beat Wall Street’s estimates by a wide margin.
The company reported earnings of $3.45 per share which was 55 cents ahead of projections. Revenue came in at $731 million, ahead of the estimates of $694 million.
Here is what the CEO had to say in the conference call:
“Despite a difficult economic environment, the summer travel season turned out to be an exceptionally strong one for Priceline.com, as 3rd quarter growth rates accelerated sequentially for our international and domestic businesses.”
We had a pretty good feeling the company would smash earnings and as you would imagine, analysts are upgrading shares today. Kaufman Brothers reiterated the stock as a ’Focus List Pick’ and increased its Price Target from $200 to $240.
At current prices, that equates to a 20% gain but it would cost you $200,000 to buy a thousand shares. We went the easier route and played the call options for better gains…
Sorry for the short commentary today but we are busy finding new trades. We think we have one picked out for Wednesday but we are still researching it.
As we head to press, the Dow is down 10 points to 10,216…
Tags: momentum options, MomentumOptionsTrading.com, options help, options mentoring, options track record, options trading, Priceline.com, trading options Posted in Hot Stocks | Comments Off
Tuesday, November 10th, 2009
10:15am (EST)
Sorry for the late post today folks but we wanted to see Priceline.com (PCLN, $199.46, up $25.73) open this morning. And we are glad we did. Current subscribers just banked a 350% profit…check the Members Area…
Tags: momentum options, MomentumOptionsTrading.com, options help, options mentoring, options track record, options trading, Priceline.com, trading options Posted in Hot Stocks | Comments Off
Monday, November 9th, 2009
9:15am (EST)
Futures are pointing towards a strong open after some upbeat comments from the G20 meetings. News that the Group of 20 countries have agreed to keep their economic stimulus measures in place has put the bulls on the attack as the Dow futures are 82 points ahead of the opening bell.
S&P 500 futures are up 9 to 1,075, while the Nasdaq 100 futures are higher by 15, to 1,745.
We are still waiting for Priceline.com (PCLN, $172, up $3.99) earnings to come out but it looks like we have a higher bid. Current subscribers can check the Members Area for the updates.
Tags: momentum options, MomentumOptionsTrading.com, options help, options mentoring, options track record, options trading, Priceline.com, trading options Posted in Earnings, Hot Stocks, Market Commentary | Comments Off
Monday, August 10th, 2009
9:00am (EST)
We are looking at a slightly negative open with futures trading lower this morning. Around the globe, the Asian markets have posted impressive gains but the major European exchanges are experiencing a decline. As a result, Dow futures are currently down 39, or 0.4%, to 9,276. The S&P 500 futures are off by 5, or 0.3% to 1,001, while the Nasdaq futures are down 7, or 0.5%, to 1,612.
The Fed will be meeting on Tuesday and Wedneday but don’t expect any sweeping changes to interest rates. Bernanke will keep key interest rates steady, but concerns about inflation are starting to grow, which could eventually force the Fed to raise rates. Besides that, we will get a number of earning announcements from some of the biggest retailers this week.
Priceline.com (PCLN, $131.32) kicked things off this morning. The company said the total value of its bookings rose nearly 13% to $2.4 billion. Priceline said that travel demand for the summer peak season has been strong given the super deals that are floating out there. Shares are up $6 in pre-market trading.
McDonald’s (MCD, $55.20) should get a little pop at the open after saying global sales were up 4.3% in July. Specifically, U.S. sales were up 2.6%, Europe – 7.2%, Asia/Pacific, Middle East and Africa sales came in at a 2.1% increase.
Other earning announcements to watch for this week include Wal-Mart Stores (WMT, $49.29) and Macy’s (M, $15.99).
Rick@MomentumOptionsTrading.com
Tags: Macy's, McDonald's, Priceline.com, Wal-Mart Posted in Market Commentary | No Comments »
Monday, May 11th, 2009
1:40pm (EST)
Priceline.com (PCLN, $107.27, up $2.37) reported earnings this morning that were better-than-expected. The stock has doubled from its November low of $45 and is right at support/resistance.
Before the breakdown to the November low, shares had built a solid base between $100-$110. Once $100 was broken, it was a quick 50% haircut. I was looking at the option activity on Friday and noticed a more bullish bias heading into earnings.
The company was expected to report a profit of 93 cents a share. There are 14 analysts that cover the stock on Wall Street and their estimates ranged from 81 cents to $1.03. That represented a 10% earnings surprise either way. Excluding items, Priceline actually earned $1.09 a share, so they beat by 16 cents.
After looking at the trade though, I decided the “implied volatility” was just too much for me to risk going long. I also wasn’t sold we would get that big of a move in Priceline after it reported earnings. Good thing.
The May 105 calls (PUZEA, $3.90, down $1.90) and the June 105 (PUZFA, $8.15, down $0.65) have both lost money today despite the stock’s 2% rise. The point I’m trying to make is that even if you feel 100% certain that a stock will go up, always check the option price to make sure you aren’t overpaying for a position.
ExxonMobil (XOM, $69.14, down $1.24) is down slightly as we head towards the final bell. I had profiled the May 70 calls (XOMEN, $0.65, down $0.55) and the June 75 calls (XOMFO, $0.63, down $0.16) and was more bullish on the June options. I like them here at current levels.
Rick Rouse
Rick@OptionsMentoring.com
Tags: ExxonMobil, Priceline.com Posted in Option Trades | No Comments »
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The Price Is Right
Monday, November 9th, 2009
9:15am (EST)
Futures are pointing towards a strong open after some upbeat comments from the G20 meetings. News that the Group of 20 countries have agreed to keep their economic stimulus measures in place has put the bulls on the attack as the Dow futures are 82 points ahead of the opening bell.
S&P 500 futures are up 9 to 1,075, while the Nasdaq 100 futures are higher by 15, to 1,745.
We are still waiting for Priceline.com (PCLN, $172, up $3.99) earnings to come out but it looks like we have a higher bid. Current subscribers can check the Members Area for the updates.
Tags: momentum options, MomentumOptionsTrading.com, options help, options mentoring, options track record, options trading, Priceline.com, trading options
Posted in Earnings, Hot Stocks, Market Commentary | Comments Off