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.
Tuesday, October 20, 2015
Yahoo! Inc. (NASDAQ:YHOO) Puts
**OPTION TRADE: Buy the YHOO Nov 2015 31.000 put (YHOO151120P00031000) at approximately $0.80. Sell price is left to your own judgment.
Yahoo! Inc. (NASDAQ: YHOO), a global technology company that is engaged in supplying Internet search, communication and digital content, is scheduled to be issuing its Q315 quarterly earnings data today, October 20th, after market closes, and it is expected to deliver one of its worst quarters in years from an earnings standpoint.
Analysts expect the company to announce earnings of $0.17 per share and revenue of $1.26 billion for the quarter. While these estimate imply pretty flat earnings in relation to the past couple of quarters, they also entail a huge decline from the earnings of $0.52 per share (on revenue of $1.094) reported in the third quarter of 2014.
Yahoo Inc, which has forecast lower-than-expected revenue for the third quarter, is also expected to report profit well below analysts’ average estimate on Tuesday. The company is planning a major shakeup in its media unit as it struggles to revive its core advertising business. Yahoo has been developing content for its mobile platform to drive user engagement and ad sales as its core online advertising business struggles in the face of stiff competition from Alphabet Inc and FaceBook Inc. Yahoo's plan to proceed with the spinoff of its stake in Chinese e-commerce company Alibaba Group Holding Ltd, despite running into hurdles with the U.S. Internal Revenue Service (IRS), may be a continuing saga.
Despite the early success with the MVNS initiatives and a long honeymoon period with the CEO, the company overall remains challenged to keep up with growth in an industry that's innovating faster.
Tuesday, October 20, 2015
VMware, Inc. (NYSE:VMW) Calls
**OPTION TRADE: Buy the VMW Nov 2015 75.000 call (VMW151120C00075000) at approximately $0.90. Sell price is left to your own judgment.
VMware, Inc. (NYSE: VMW), a supplier of virtualization infrastructure solutions, is expected to deliver a strong third quarter results after market closes today. Management guided for earnings of $1.02 per share on revenue of $1.672 billion. This compares to EPS of $0.87 on sales of $1.52 billion registered a year ago.
VMware reported preliminary results on Oct. 12, but the primary focus will on any commentary on the Dell-EMC acquisition. VMware is majority-owned by EMC Corp.
However, one week after Dell Inc.’s acquisition of storage giant EMC Corp., CEO Michael Dell has outlined his plans for VMware Inc., the virtualization giant that accounts for the bulk of the EMC Federation’s value.
Dell states that VMware’s has had overwhelming success, describing it as an “an amazing company filled with very talented people creating innovative software and solutions that are leading the way in a cloud-based, connected world.” He also noted that VMware thrives on the vibrant ecosystem within its VMware Partner Network, which consists of OEM partners, system integrators, solution providers, resellers and its customers.
Dell seems to be an adherent of the “if it isn’t broke, don’t fix it” mentality. He said the plan is for VMware to remain as it is – an independent public company. He promised that once the deal is concluded, he’ll continue to allow VMware to be run in exactly the same way as EMC did, independently of its parent company.
Vmware, Inc. stock has received a short term price target of $ 93.68 from 19 analysts. As many as 26 brokerage firms have rated Vmware, Inc. at 1.88. The stock garnered a place in the hold list of 10 stock analysts, 3 analysts suggested buying the shares, and 13 analysts rated the company as a strong buy.