by Ian Harvey
IMPORTANT NOTE: There is no stop-loss or pre-determined sell price recommended – this is left to the discretion of the individual trader.
Wednesday, 10 February, 2016
Option Trade – Zynga Inc (NASDAQ:ZNGA) Puts
**OPTION TRADE: Buy the ZNGA Mar 2016 2.000 put (ZNGA160318P00002000) at approximately $0.10. Sell price is left to your own judgment.
Zynga Inc (NASDAQ: ZNGA), a provider of social game services, is set to report fourth-quarter 2015 results today, February 10th. Last quarter, the company delivered positive earnings surprise of 50%. On an average, Zynga has delivered a positive earnings surprise of 27.98% over the last four quarters.
However, Zynga has been facing a rough time owing to a dwindling user base; therefore, this earnings report may not look good! For the fourth quarter, the company expects revenues to be $175 million to $185 million. GAAP net loss per share is expected to be in the range of 6-8 cents.
In the last quarter, the company was unable to unveil its two new games, CSR2 and Dawn of Titans, which have now been postponed to 2016. This automatically disappointed investors. The company also provided a soft fourth quarter guidance.
Since the unexplained resignation of its Chief Financial Officer, David Lee in Nov 2015, the company has not been able to find a suitable replacement yet. Michelle Quejado, Zynga's Chief Accounting Officer has been serving as an interim CFO as of now. Intensifying competition from the likes of Glu Mobile and Electronic Arts also remains a concern.
Furthermore, the company has been striving to repeat the success of Farmville after its fallout with Facebook (FB), which is proving to be a daunting task amid all these challenges.
Zynga Inc shares moved down -8.33% in last trading session and ended the day at $2.09. ZNGA Gross Margin is 70.40% and its return on assets is -5.10%. Zynga Inc quarterly performance is -18.99%.
Tuesday, 09 February, 2016
Option Trade – Akamai Technologies, Inc. (NASDAQ:AKAM) Puts
**OPTION TRADE: Buy the AKAM Feb 2016 35.000 put (AKAM160219P00035000) at approximately $1.00. Sell price is left to your own judgment.
Akamai Technologies, Inc. (NASDAQ: AKAM), a provider of content delivery and cloud infrastructure services for the delivery of content and applications over the Internet, is expected to report fourth-quarter revenue today after market closes. The company's revenue growth has been hurt by a slowdown in online traffic as well as a strong dollar.
Gateway Investment Advisers LLC reduced its stake in shares of Akamai Technologies, Inc. by 1.1% during the fourth quarter, according to its most recent disclosure with the SEC.
In other Akamai Technologies news, Director Naomi O. Seligman sold 7,729 shares of the firm’s stock in a transaction on Wednesday, December 2nd. The stock was sold at an average price of $57.82, for a total transaction of $446,890.78.
Keybanc reduced its price target on Akamai Technologies to $75 from $86 on Monday morning, but maintained its "overweight" rating on the stock.
"While e-commerce improved quarter over quarter and produced solid year over year growth, the media traffic rate continued to weaken," the firm said in an analyst note.
Several other research firms have weighed in on AKAM…..
• B. Riley lowered their price objective on shares of Akamai Technologies from $66.00 to $64.00 and set a “neutral”.
• Cowen and Company cut shares of Akamai Technologies from an “outperform” rating to a “market perform” rating and lowered their price objective for the company from $70.00 to $61.50.
• Craig Hallum cut shares of Akamai Technologies from a “buy” rating to a “hold” rating.
• Pacific Crest cut shares of Akamai Technologies to a “buy” rating and lowered their price objective for the company from $91.00 to $86.00.
The company has had lackluster performance in the stock itself. Despite its growing revenue, the company underperformed as compared with the industry average of 15.0%. Since the same quarter one year prior, revenues rose by 10.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
Akamai Technologies Inc's earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently.
Akamai Technologies, Inc. traded down 5.14% during trading on Monday, hitting $40.98. 3,280,033 shares of the company’s stock traded hands. Akamai Technologies, Inc. has a 52-week low of $40.22 and a 52-week high of $78.44. The company has a market cap of $7.29 billion and a PE ratio of 22.52. The company’s 50 day moving average price is $48.09 and its 200 day moving average price is $62.84.
Monday, 08 February, 2016
Option Trade – CVS Health Corp (NYSE:CVS) Puts
**OPTION TRADE: Buy the CVS Feb 2016 90.000 put (CVS160219P00090000) at approximately $1.00. Sell price is left to your own judgment.
CVS Health Corp (NYSE: CVS), formerly CVS Caremark Corporation, is a pharmacy healthcare provider in the United States, is set to release the results of its fourth-quarter before the market opens tomorrow, February 9th. Analysts forecast earnings of $1.53 per share, up from $1.21.
The healthcare sector ran into trouble during the latter part of 2015. The stock's valuation is reasonably high at a P/E of 21.3. The company reported earnings in-line with the consensus last period, and slightly lower than the consensus the period before. The disappointing August report began the stock's downward trend, and there is risk that another disappointing report could lead to additional losses.
CVS' $1.9 billion acquisition of Target 's pharmacy and clinic business officially closed in the middle of December, and CVS has already stated that it will spend the first few quarters of 2016 converting the 1,672 Target pharmacies into its planed "store within a store" format. CEO Merlo stated on the last earnings call that the Target acquisition will "enable us to reach more patients, add a new retail channel for our unique offerings, and expand convenient options for consumers."
A few days ago, it was revealed that thus far, only a handful of Target's pharmacies had been converted to the new format, with the remainder being converted over the next few months.
Also, CVS will pull back on its pace of new store openings as it devotes its internal resources to the Target store conversions.
Camarda Financial Advisors LLC cut its stake in CVS Health Corp by 5.3% during the fourth quarter, according to its most recent disclosure with the SEC.
Several research firms have weighed in on CVS. Citigroup Inc. cut their target price on CVS Health Corp from $120.00 to $105.00 and set a “neutral” rating on the stock. Vetr lowered CVS Health Corp from a “strong-buy” rating to a “buy” rating and set a $108.00 target price on the stock. in a report on Monday, February 1st. Also, Cowen and Company cut their target price on CVS Health Corp from $118.00 to $113.00.
In other news, CEO Larry J. Merlo sold 46,393 shares of the company’s stock in a transaction dated Monday, January 11th. The shares were sold at an average price of $95.00, for a total value of $4,407,335.00.
CVS was recently trading at $95.15, down $18.50 from its 12-month high and $13.78 above its 12-month low. Technical indicators for CVS are bearish and the stock is in a weak downward trend.
CVS has lost 2.7% since the beginning of the year.