“Cut-to-the-Chase” Recommendations
- Week Beginning 31st August, 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. I would suggest a pre-determined sell at 100% profit.



Thursday, September 03, 2015
Option Trade – G-III Apparel Group, Ltd. (NASDAQ:GIII) Calls

**OPTION TRADE: Buy the GIII Sep 2015 75.000 call (GIII150918C00075000) at approximately $0.30. Sell price is left to your own judgment.

G-III Apparel Group, Ltd. (NASDAQ: GIII reported earnings yesterday morning, jumped nicely at the start of the market, and then was subjected to a pummeling after that. But, GIII made back most of the ground in the afternoon, actually finishing in positive territory by the close. However, the damage to our option call trade, which was executed on Tuesday, was already done.

But looking on the bright side of the situation, another opportunity has been presented in the form of a lower entry price, and based on the actual report this should cover losses and then some.

When studying the earnings report and the future of GIII, it becomes clear that the company has done very well….

For the quarter ended July 31, 2015, G-III reported that net sales, driven by robust wholesale and retail performance, increased 12% to $474 million from $424 million in the year-ago period.

Analysts were expecting revenue of $470.01 million for the quarter.

The Company’s net income for the second quarter increased to $12.5 million from $6.2 million in the prior year period. The Company reported an increase in net income per diluted share to $0.27 from $0.14 in the prior year period. All share and per share data in this release have been retroactively adjusted to reflect the two-for-one stock split effective May 1, 2015.

Again, analysts were only expecting G-III Apparel Group to post earnings of $0.20 per share.

As to the future outlook of GIII the Company revised its prior guidance for the full fiscal year ending January 31, 2016. The Company is now forecasting net sales of approximately $2.40 billion and net income between $129 million and $134 million, or a range between $2.78 and $2.88 per diluted share, compared to its previous guidance of net sales of approximately $2.40 billion and net income between $123 million and $128 million, or a range between $2.66 and $2.76 per diluted share. For the fiscal 2015 year ended January 31, 2015, net sales were $2.12 billion and net income was $110.4 million, or $2.48 per diluted share.

Once again, very good results!

Volatility, investor panic and unclear thinking, has now given us a very good entry price to benefit from this situation.



Thursday, September 03, 2015
Option Trade – TESARO Inc (NASDAQ:TSRO) Calls

**OPTION TRADE: Buy the TSRO Sep 2015 60.000 call (TSRO150918C00060000) at approximately $0.50. Sell price is left to your own judgment.

Pharmaceutical names have been making major moves this week, not only being caught up in the volatility game, but also certain companies are benefiting from good news.

TESARO Inc (NASDAQ: TSRO), a development-stage, oncology-focused biopharmaceutical company for cancer patients, has moved up nicely after the FDA approved its treatment for chemotherapy-induced nausea.

The drug, Rolapitant, was approved to be used along with other agents to prevent delayed nausea and vomiting associated with initial and repeat courses of chemotherapy.

Tesaro licensed Rolapitant from Opko Health Inc in December 2010, giving it worldwide rights to develop and market the therapy.

In the wake of the news, Jefferies lifted its price target on TSRO to $73 from $70 -- in uncharted territory for the stock, which has now added nearly 50% in 2015.

A short squeeze should propel TSRO even higher, as the bears hit the exits. Short interest accounts for almost 23% of the equity's float, and would take more than 13 sessions to repurchase, at TSRO's average daily trading volume.



Wednesday, September 02, 2015
Option Trade – Qorvo Inc (NASDAQ:QRVO) Calls

**OPTION TRADE: Buy the QRVO Sep 2015 60.000 call (QRVO150918C00060000) at approximately $0.60. Sell price is left to your own judgment.

The S&P 500 Index (SPX) recently experienced its fourth 10% pullback -- typically called a "correction" -- since the 2008 crash. The previous three pullbacks of this magnitude proved to be great buying opportunities. Whether this one is over or not remains to be seen.

After this recent correction, Qorvo Inc (NASDAQ: QRVO), a provider of core technologies and radio frequency (RF) solutions for mobile, infrastructure, and aerospace and defense applications, is one stock that has been among one of the worst performers during the pullback, but positive over the previous 52 weeks.

It also appears that analysts are quite positive about QVRO’s future price rise. There are seventeen analysts giving a “buy” rating and one has assigned a strong buy rating to the company’s stock compared to one analyst rating the stock with a sell and two giving a hold rating. The latest, Credit Agricole initiated coverage on shares of Qorvo in a research report released yesterday morning, The brokerage issued an outperform rating on the stock. The stock presently has an average target price of $80.61.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and reasonable valuation levels.



Tuesday, September 01, 2015
Option Trade – Joy Global Inc. (NYSE:JOY) Puts

**OPTION TRADE: Buy the JOY Sep 2015 22.000 put (JOY150918P00022000) at approximately $0.80. Sell price is left to your own judgment.

Joy Global Inc. (NYSE: JOY), a manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores, is scheduled to report third-quarter fiscal 2015 results before the opening bell on Sep 3, 2015, and is expected to report earnings of $0.61 for the current fiscal quarter.

Joy Global continues to face choppy demand in the international markets on lackluster economic growth. In the fiscal second quarter, Joy Global’s original equipment and service orders declined year over year after adjusting for foreign currency exchange movements. For the first time in the last two years, the company failed to book any electric mining shovel order.

Despite having customers in other industries, Joy Global’s revenue generation to a large extent is tied to coal market demand. Nearly 61% of the total revenue of the company is generated from its thermal and metallurgical coal-mining customers.

The company is expected to suffer due to extended production shutdown at many of its major customers. Last quarter too, the company’s service order was hit by incremental idling of coal mines in North America.

Moreover, the company itself expects to report weak third-quarter fiscal 2015 results in terms of sales, earnings and cash.

As well, Joy Global Inc. declared that Randal W. Baker, the Company’s Executive Vice President and Chief Operating Officer, would leave the Company effective September 4, 2015 to pursue other opportunities. Mr. Baker formerly served as President of Joy Global Surface Mining Inc. from November 2009 until his appointment as Chief Operating Officer in December 2013.

Joy Global Inc. has received a strong sell rating for the short term, according to analysts.

Axiom initiates coverage on Joy Global Inc. and announced its price target at $21 per share on the company. The rating by the firm was issued on August 21, 2015.

Shares of Joy Global, Inc. appreciated by 4.22% during the last five trading days but lost 8.29% on a 4-week basis. Joy Global, Inc. has dropped 38.29% during the last 3-month period. Year-to-Date the stock performance stands at -47.43%.



Tuesday, September 01, 2015
Option Trade – G-III Apparel Group, Ltd. (NASDAQ:GIII) Calls

**OPTION TRADE: Buy the GIII Sep 2015 75.000 call (GIII150918C00075000) at approximately $1.00. Sell price is left to your own judgment.

G-III Apparel Group, Ltd. (NASDAQ: GIII), designers, manufacturers and marketers of a range of apparel, including outerwear, dresses, sportswear, women’s suits and performance wear, as well as luggage and handbags, small leather goods and cold weather accessories, will report quarterly earnings before the market opens on Wednesday, and it is likely to be bullish. Analysts expect G-III Apparel Group to post earnings of $0.20 per share and revenue of $470.01 million for the quarter.

G-III Apparel Group, Ltd. is up 17.14% in the last 3-month period. Year-to-Date the stock performance stands at 34.92%. The company shares have rallied 61.89% in the past 52 Weeks.

On July 13, 2015, the shares registered a one year high of $73.93 and a one year low was seen on October 20, 2014 at $35.34.

Many analysts have been positive on the company. In a research note released to the investors, Brean Capital upgrades its rating on G-III Apparel Group from a “Hold” to a “Buy” rating. The Brokerage Firm announces its price target at $75 per share on the company.

Another research firm was Barclays who reiterated their Overweight stance on June 3. Barclays increased their price target on G-III Apparel Group Ltd from $65 to $75.

According to 7 Analysts, The short term target price has been estimated at $ 76.43.



Tuesday, September 01, 2015
Option Trade – Phillips 66 (NYSE:PSX) Calls

**OPTION TRADE: Buy the PSX Sep 2015 85.000 call (PSX150918C00085000) at approximately $0.40. Sell price is left to your own judgment.

Investing in energy has been quite difficult of late. Almost all aspects of the energy sector have traded lower. One group that has held up in the panic has been the refining and marketing portion of the energy sector. After all, lower oil prices often help them with their margins.

Phillips 66 (NYSE: PSX), an energy producing and logistics firm with refining, chemicals, midstream and marketing and specialties companies, traded 3.1% higher yesterday at $79.73, after Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK.A) took a $4.48 billion stake in the oil company. The stake was revealed late Friday, and accounts for nearly 58 million shares, or 10% of PSX.

It is a hope that refiners will have an unexpected and significant rally as low oil prices continue to spur demand for gasoline, diesel and other petroleum products produced by the so called downstream sector.

Since oil fell by half last year, gasoline demand in the US has surged to an eight-year high, as drivers see per gallon prices fall below $3 and take to the road. As oil prices have dropped, it's obvious to people in the business that refiner stocks are the best bet.

The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity.

Analysts are quite in favor of Phillips 66 -- 9 market experts have marked it as a strong buy, 1 analyst recommended buying the shares, and only 3 analysts have rated the company at hold.

The company has a consensus price target of almost $93.50.



Monday, August 31, 2015
Option Trade – Twitter Inc (NYSE:TWTR) Calls

**OPTION TRADE: Buy the TWTR Sep 2015 30.000 call (TWTR150918C00030000) at approximately $0.60. Sell price is left to your own judgment.

Twitter Inc (NYSE: TWTR), a global platform for public self-expression and conversation in real time, received a boost this morning when it was upgraded by SunTrust Robinson Humphrey from Neutral to Buy with a price target of $38.00, saying sentiment is low and they see a catalyst soon.

As you know we have profited quite nicely on Twitters downfall – 18th August – but it appears that it may be finding a bottom, and after today’s market pullback, a rally may be due tomorrow, which will push Twitter higher.

Analyst Robert Peck commented, "We are upgrading TWTR to Buy from Neutral. Given sentiment has washed out (stock down ~50% from 1Q'15-end), a series of positive catalysts, and attractive valuation with a strategic floor, we are cautiously optimistic."

He added, "Our upgrade is predicated on a quick mgmt. clarification (likely ~Labor Day) and execution. Importantly, we believe the 2nd derivative is now positive (i.e. more upside potential than down). While TWTR has near term challenges and our ests are inline with St., we think user metrics have at least stabilized and can grow from the below catalysts."

Also, the brokerage firm is particularly fond of the company's partnership with Google Inc (NASDAQ:GOOGL), which puts tweets in search results, saying it could increase both users and engagement next year. Twitter Inc has been waiting on good news, with the shares off more than 25% year-to-date.

Playing TWTR is automatically a speculation -- but this might just be a decent entry point.



Monday, August 31, 2015
Option Trade – Paypal Holdings Inc (NASDAQ:PYPL) Calls

**OPTION TRADE: Buy the PYPL Sep 2015 37.000 call (PYPL150918C00037000) at approximately $0.50. Sell price is left to your own judgment.

Paypal Holdings Inc (NASDAQ: PYPL), a technology platform company, which enables digital and mobile payments on behalf of consumers and merchants around the world, has had a big boost this morning with stock price surging as high as $35.50, but has now pulled back due to the market sell-off again.

An article in the August 31 edition of Barron's stated that PayPal shares could rise as much as 40% as digital wallets proliferate, stating the company has loads of opportunities and cash to grow.

Although the former eBay (NASDAQ:EBAY) unit's shares have dropped since its recent spin-off, the "promise of PayPal Holdings hasn't wavered." The firm is now clear to do deals with big vendors like Staples (NASDAQ:SPLS) and move into back office operations and other services.

Also, PayPal is increasing prices for thousands of small businesses as the company looks to maintain revenue growth and boost profit margins as a stand-alone business separate from eBay Inc. The San Jose, Calif.-based payments company is introducing for U.S. merchants a flat rate of 2.9% plus 30 cents for domestic transactions and 3.9% plus a fee that varies by country for international transactions. The change takes effect Oct. 1, PayPal said Thursday in an email to sellers.

As well, on 26th August, PayPal said that, it would expand its One Touch payments product to 13 new markets in Europe and Australia, bringing a simpler check-out to online shoppers and merchants.

Since spinning off of eBay in late July, Paypal Holdings Inc has underwhelmed on the charts. The Street, however, apparently sees upside: the security's consensus 12-month price target of $43.88 represents a more than 25% premium to current levels -- and sits in never-before-seen territory.

PayPal Holdings, Inc. shares are expected to touch $43.29 in the short term. This short term price target has been shared by 17 analysts.




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