“Cut-to-the-Chase” Recommendations -Week Beginning 30th November, 2015-

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.



Friday, December 04, 2015
BP plc (ADR) (NYSE:BP) Calls

**OPTION TRADE: Buy the BP Jan 2016 35.000 call (BP160115C00035000) at approximately $0.50. Sell price is left to your own judgment.

Although it's a tough time for oil, BP plc (ADR) (NYSE: BP), is approaching historically supportive trendlines.

It's no secret that oil's been struggling lately, with liquid gold closing below $40 a barrel on Wednesday. However, futures are moving higher as the Organization of Petroleum Exporting Countries (OPEC) convenes, and, what's more, the recent drop in the energy sector could present buying opportunities.

BP shares recently met their 80-day moving average, which, historically, has been a positive occurrence. The six previous times BP pulled back to this trendline, it's averaged a 21-day gain of 1.4%. What's more, over that same time frame, the shares have moved higher two-thirds of the time following a signal.

Also, potentially working in the stock's favor is the sudden affinity for puts at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). If some of these fresh bearish speculators make a quick exit, it could provide BP with a much-needed lift.

Arga Investment Management Lp increased its stake in Bp Plc (NYSE:BP) by 28.88% based on its latest Q3 2015 regulatory filing with the SEC. Arga Investment Management Lp bought 488,898 shares as the company’s stock declined 22.18% with the market. The institutional investor held 2.18M shares of the integrated oil company at the end of Q3, valued at $66.68 million, up from 1.69M at the end of the previous reported quarter.

Out of 24 analysts covering BP PLC, 13 rate it “Buy”.



Friday, December 04, 2015
Medtronic PLC (NYSE:MDT) Calls

**OPTION TRADE: Buy the AMBA Jan 2016 60.000 call (AMBA160115C00060000) at approximately $1.50. Sell price is left to your own judgment.

Ambarella Inc (NASDAQ: AMBA), a developer of semiconductor processing options for video that enable high definition, video capture, sharing and display, has been dogged by its wrongful association with GoPro, Inc. (NYSE:GPRO), and playing havoc with its success.

Although GoPro is a big client, it is not Ambarella’s only customer. The market has, however, always gauged the two on the same scale. If Ambarella’s management hinted at weakening demand, GPRO stock went for a nosedive. Likewise, if GoPro’s management guided lower, Ambarella stock took a hit. Their fate has been tied together.

What the market has failed to see is Ambarella’s diversified business, contrary to GoPro’s. GoPro is often dubbed a “one-trick pony” for its sole product line of wearable cameras. Ambarella, on the other hand, has a much wider scope in video processing semiconductor chips for a large portfolio of wearable, automotive, security, sports, and flying camera clients.

Demand for Ambarella’s top three categories, excluding the wearables segment that serves GoPro, is on the rise. Incidents like the recent Planned Parenthood shooting have sent a wave of paranoia across the country and security concerns are continuing to drive demand in the security cameras segment. The consumer security IP segment currently makes up only a small portion of Ambarella’s revenue, but management is expecting to hit the upper end of the single digits this quarter.

Automotive cameras have been gaining in consumer interest, as well, particularly dashboard cameras. Ambarella’s advanced driver assistance systems in the automotive category hold promising potential, too. There’s a lot of commotion around driverless cars with tech giants like Alphabet heavily invested in bringing this technology to the world. U.S. authorities have lately given a green signal to the technology and we will soon see new entrants in this industry that will further drive up demand for Ambarella’s systems.

Likewise, flying cameras have a lot of popularity in the fast-growing drones industry, where their utility spans from security surveillance to event videography and live news broadcasting. In the flying cameras market, GoPro is starting to enter. Ambarella, in contrast, is already catering to the biggest players.

Bigger companies like Intel and Qualcomm are also involved in a similar chip-making business and plan to tap into Ambarella’s flying cameras market, but what gives Ambarella an edge over peers is how efficiently it brings together two opposites: ultra high-definition (UHD) quality at low power.

Finally there is a divergence appearing between GoPro an d Ambarella in their price movements, which provides hope that the market now sees Ambarella’s underlying fundamentals that set it apart from GoPro.



Friday, December 04, 2015
Medtronic PLC (NYSE:MDT) Calls

**OPTION TRADE: Buy the MDT Jan 2016 80.000 call (MDT160115C00080000) at approximately $0.50. Sell price is left to your own judgment.

Medtronic PLC (NYSE: MDT), a medical technology and services company, is seeing its shares rise following a stronger than expected earnings report, and also plenty of positive analyst action.

The stock traded as high as $78.61 and last traded at $77.77, with a volume of 6,643,568 shares changing hands. The stock had previously closed at $76.11.

The medical technology company reported $1.03 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.00 by $0.03. The company had revenue of $7.10 million for the quarter, compared to analyst estimates of $7.06 million. During the same quarter in the prior year, the business earned $0.96 earnings per share. Medtronic PLC’s revenue was up 61.7% compared to the same quarter last year.

Medtronic PLC has been given a consensus rating of “Buy” by the twenty-two ratings firms that are currently covering the firm. One investment analyst has rated the stock with a sell recommendation, four have issued a hold recommendation, fifteen have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $85.59.

Recently Medtronic PLC had its “outperform” rating reaffirmed by analysts at Credit Suisse. They now have a $85.00 price target on the stock, up previously from $76.09. Analysts at JPMorgan Chase & Co. set a price target from $82.00 to $88.00. They now have an “overweight” rating on the stock. Also, Medtronic PLC was upgraded by analysts at Goldman Sachs from a “buy” rating to a “conviction-buy” rating. They now have a $90.00 price target on the stock, up previously from $87.00.



Thursday, December 03, 2015
Sunedison Inc (NYSE:SUNE) Calls

**OPTION TRADE: Buy the SUNE Jan 2016 3.500 call (SUNE160115C00003500) at approximately $0.90. Sell price is left to your own judgment.

Sunedison Inc (NYSE: SUNE), a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a developer and manufacturer of silicon wafers, saw its stock rally as high as 9.09% on Tuesday, following its decision to cancel the purchase of a 15.87% stake in Renova Energia from Light SA. Sunedison had initially decided to finance the deal through the transfer of its shares worth $250 million. According to a filing by Light SA, both Sunedison and Light had an option to terminate the deal by November 30.

Sunedison decided to back out of the deal amid adverse market conditions in Brazil. Further, Credit Suisse, in a sell side report published on Tuesday, believed that the $250 million share transfer would have led to a significant dilution.

It is believed that the breakout from the deal can be a positive sign for the investors. Oppenheimer in a research report published on Tuesday upgraded the stock to Outperform. Oppenheimer remains highly bullish on the stock and claims that the stock is a good buying opportunity for investors as it is currently trading well below the intrinsic value of the asset portfolio.

In related news, Director Clayton C. Daley, Jr. purchased 10,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were purchased at an average price of $11.11 per share, with a total value of $111,100.00.

Also, CEO Ahmad R. Chatila purchased 4,800 shares of the firm’s stock in a transaction dated Monday, September 14th. The stock was bought at an average cost of $10.87 per share, for a total transaction of $52,176.00.

Out of 22 research analysts fifteen have issued a buy or a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus price target of $19.42.

Sunedison Inc’s stock had its “buy” rating reaffirmed by research analysts at Deutsche Bank in a research report issued to clients and investors on Wednesday.

Also, Sunedison Inc‘s stock had its “buy” rating restated by stock analysts at Credit Suisse in a note issued to investors on Tuesday.



Thursday, December 03, 2015
Guidewire Software Inc (NYSE:GWRE) Calls

**OPTION TRADE: Buy the GWRE Jan 2016 65.000 call (GWRE160115C00065000) at approximately $0.60. Sell price is left to your own judgment.

Guidewire Software Inc (NYSE: GWRE), a provider of software products for Property & Casualty (P&C) insurers, shares reached a new 52-week high last Wednesday following a better than expected earnings announcement. The stock traded as high as $64.78 and last traded at $60.61, with a volume of 961,823 shares trading hands. The stock had previously closed at $60.55.

The company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.04. During the same quarter in the previous year, the firm earned $0.08 EPS. The firm earned $82.30 million during the quarter, compared to analyst estimates of $81.43 million. Guidewire Software’s quarterly revenue was up 3.2% on a year-over-year basis.

Several equities research analysts have weighed in on GWRE shares, with eight out of 10 giving a BUY and a consensus target price of $68.80. Deutsche Bank boosted their target price on shares of Guidewire Software from $70.00 to $75.00 in a research report on Wednesday. Zacks Investment Research upgraded shares of Guidewire Software from a “hold” rating to a “buy” rating and set a $67.00 price target on the stock in a report on Wednesday, November 25th. Citigroup Inc. upgraded shares of Guidewire Software from a “neutral” rating to a “buy” rating and set a $70.00 target price on the stock in a research note on Friday, October 30th. Stephens restated a “buy” rating on shares of Guidewire Software in a research note on Thursday, October 8th.



Thursday, December 03, 2015
Monsanto Company (NYSE:MON) Calls

**OPTION TRADE: Buy the MON Jan 2016 100.000 call (MON160115C00100000) at approximately $1.40. Sell price is left to your own judgment.

Monsanto Company (NYSE: MON), a provider of agricultural products for farmers, has had a rough year, down almost 19%. If you look at the chart though, you can see that MON has rallied hard off the lows, and after a month-long consolidation period in November it seems that it is ready to move higher.

Monsanto Company, of the Basic Materials sector, was at a price of 97.18 yesterday, marking a change of -0.13%. Monsanto Company forecasts earnings per share growth of -8.70% over the next year. Its return on investment is currently 16.60% and its debt to equity is currently 1.29. Monsanto Company has a market cap of 42800.83 and its gross margin is 54.50%.

As many as 14 brokerage firms have rated Monsanto Company with 1 analyst recommending SELL, 7 stock Analysts with a HOLD, and 6 analysts rated the company as a strong buy.



Thursday, December 03, 2015
Agilent Technologies Inc (NYSE:A) Calls

**OPTION TRADE: Buy the A Jan 2016 42.500 call (A160115C00042500) at approximately $0.90. Sell price is left to your own judgment.

Agilent Technologies Inc (NYSE: A), a measurement company, providing core bio-analytical and electronic measurement solutions to the life sciences, diagnostics and genomics, chemical analysis, communications and electronics industries, has been in a downtrend for a year, but recently bounced off the lows. After reporting strong earnings on the 16th November, it just might be on the verge of a breakout.

Agilent Technologies announced its 4QFY15 earnings on November 16 evening, following which the share price gained 3% the next trading day.

The company performance remains on track in achieving its FY17 goal of 22% in adjusted operating margin.

Based on its fundamentals, the stock is currently undervalued by 6% and is, therefore, poised for some handsome gains in the short-run.

Agilent Technologies Inc. forecasts earnings per share growth of 120.30% over the next year. Its return on investment is currently 8.20% and its debt to equity is currently 0.4. Agilent Technologies Inc. has a market cap of 13859.15 and its gross margin is 50.50%.




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