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.
Thursday, 03 March, 2016
Option Trade – Entergy Corporation (NYSE:ETR) Calls
**OPTION TRADE: Buy the ETR Mar 2016 75.000 call (ETR160318C00075000) at approximately $0.45. Sell price is left to your own judgment.
Entergy Corporation (NYSE: ETR), a New Orleans, LA based company primarily engaged in electric power production and retail distribution of power, topped its quarterly earnings results on Thursday, February 18th, and is very cheap at this point of time with a 4.6 percent yield.
The company reported $1.58 EPS for the quarter, topping the consensus estimate of $1.45 by $0.13. During the same period in the previous year, the business posted $0.75 EPS. Analysts predict that Entergy Co. will post $5.15 earnings per share for the current fiscal year.
Also, there has been plenty of positive feedback from analysts and large investors…..
Entergy Corporation has received a short term rating of buy from research analysts at Zacks Investment Research with a rank of 2. The company has been rated an average of 3 by 14 Wall Street Analysts. Twelve equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $74.58.
UBS raised the price target from $62 per share to $66 per share on Entergy Corporation on February 22, 2016.
Bank of America restated a “buy” rating and issued a $78.00 price target (up from $72.00) on shares of Entergy in a report on Tuesday, February 23rd.
Barclays upped their price target on shares of Entergy from $74.00 to $75.00 and gave the stock an “overweight” rating in a report on Monday, January 4th.
Zacks Investment Research upgraded shares of Entergy from a “sell” rating to a “hold” rating in a report on Wednesday, November 4th.
TheStreet upgraded shares of Entergy from a “hold” rating to a “buy” rating in a report on Thursday, February 18th.
LSV Asset Management boosted its stake in shares of Entergy Co. by 3.2% during the fourth quarter, and now owns 4,632,774 shares of the company’s stock after buying an additional 145,027 shares during the period. LSV Asset Management’s holdings in Entergy were worth $316,696,000 as of its most recent SEC filing.
Trading volume has increased as-of-late. Entergy Co. has a 12-month low of $61.27 and a 12-month high of $79.84. The company’s market capitalization is $12.88 billion. The stock has a 50 day moving average of $70.79 and a 200-day moving average of $67.58.
Wednesday, 02 March, 2016
Option Trade – Kite Pharma Inc (NASDAQ:KITE) Calls
**OPTION TRADE: Buy the KITE Mar 2016 55.000 call (KITE160318C00055000) at approximately $1.00. Sell price is left to your own judgment.
Kite Pharma Inc (NASDAQ: KITE), a clinical-stage biopharmaceutical company focused on developing engineered autologous cell therapy (eACT™) products for the treatment of cancer, reported a slimmer-than-predicted fourth-quarter loss after Monday’s close, sending the shares soaring higher. In the wake of the earnings report, analysts have scrambled to adjust their expectations on KITE stock.
On the charts, KITE touched an all-time high of $89.84 last November -- but the stock then quickly plummeted to an annual low of $38.41 last month, shedding more than 57% of its value from peak to trough. And since early February, KITE shares have repeatedly been rejected by resistance in the $51 area.
In light of the stock's rapid plunge, short sellers have heavily targeted KITE. But the post-earnings pop suggests that some of the shorts may already be stampeding for the exits.
On the ratings front, Kite has been the subject of a number of recent research reports. In a report issued on February 25, Citigroup analyst Robyn Karnauskas initiated coverage with a Buy rating on KITE and a price target of $67, which represents a potential upside of 41.4% from where the stock is currently trading. Separately, on February 16, Jefferies Co.’s Biren Amin reiterated a Buy rating on the stock and has a price target of $92.
Overall, 7 research analysts have given a Buy rating to the stock. This gives consideration to the fact that the stock is undervalued; the average price target is $67.00 which is 41.4% above where the stock opened today.
Wednesday, 02 March, 2016
Option Trade – Splunk Inc (NASDAQ:SPLK) Calls
**OPTION TRADE: Buy the SPLK Mar 2016 47.500 call (SPLK160318C00047500) at approximately $1.00. Sell price is left to your own judgment.
Splunk Inc (NASDAQ: SPLK), a provider of software products that allow organizations to gain real-time operational intelligence by harnessing the value of their data, reported its Q4 2016 earnings last week with better results than expected and provided strong guidance for fiscal year 2017. The Splunk earnings report came just three weeks after another big data player, Tableau (NYSE:DATA) - the visualization segment leader - reported disappointing results that triggered an industry-wide sell-off in big data and enterprise software stocks. In recent quarters, Tableau's results were used as an indicator of future performance of pure-play big data companies like Splunk – and share price changed little after the report.
However, now, no fewer than 12 analysts have already adjusted their price targets on Splunk Inc -- including a hike to $72 at Maxim Group. Also, Splunk Inc had its price objective upped by equities research analysts at RBC Capital from $56.00 to $60.00 in a report released last Friday. The brokerage currently has an “outperform” rating on the software company’s stock. RBC Capital’s target price would suggest a potential upside of 30.46% from the company’s current price.
Beyond the incredible QoQ and YoY growth rates that Splunk presented, it also increased its license ASP, increased the number of large deals in a quarter, increased its number of partnerships, expanded its customer base and added some big names like Shell, Bloomberg, and SoftBank. Improvements in these factors reflect a fundamentally sustainable growth that highlights Splunk's unique positioning in its niche, strengthens its competitiveness, and determines its unofficial leading pure-play big data vendor title. Splunk provided improved guidance for fiscal year 2017 of $880M annual revenues.
The key takeaway is that Splunk appears headed to high prices in the future as the market was more bullish on the recent earnings results. The stock traded at a more reasonable multiple due to the collapse following the Tableau Software warning. Hence, momentum is now finally on the upwards path.
Tuesday, 01 March, 2016
Option Trade – Marathon Oil Corporation (NYSE:MRO) Calls
**OPTION TRADE: Buy the MRO Apr 2016 8.000 call (MRO160415C00008000) at approximately $0.70. Sell price is left to your own judgment.
Marathon Oil Corporation (NYSE: MRO), an energy company based in Houston, Texas, with operations in North America, Europe and Africa, announced that it intends to offer, subject to market and other conditions, a public offering of 135,000,000 shares of its common stock. In connection with the offering, Marathon Oil intends to grant the underwriters a 30 day option to purchase up to 20,250,000 additional shares of its common stock.
This has resulted in the share prices dropping dramatically from yesterday’s close of $8.21. At the time of this writing the shares are down 7.19% at $7.62, and if a bottom has been reached then there is plenty of upwards scope. Marathon Oil Corporation’s monthly performance stands at nearly -10.00% while its year to date performance is down close to -35.00%.
Meanwhile, Marathon Oil has received a “BBB” credit rating from analysts at Morningstar. The investment research firm’s “BBB” rating suggests that the company is a moderate default risk. They also gave their stock a five star rating.
Several analysts have also recently commented on the stock. Vetr raised shares of Marathon Oil from a “buy” rating to a “strong-buy” rating and set a $20.78 target price. Morgan Stanley reissued an “in-line” rating on shares of Marathon Oil. And Credit Suisse reissued a “focus list” rating and set a $25.00 target price on shares of Marathon Oil.
Marathon Oil Corporation shares are expected to touch $17.42 in the short term. This short term price target has been shared by 12 analysts.