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, September 11, 2015
Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) Puts
**OPTION TRADE: Buy the TTPH Sep 2015 7.500 put (TTPH150918P00007500) at approximately $0.20. Sell price is left to your own judgment.
Tetraphase Pharmaceuticals Inc (NASDAQ: TTPH), a clinical stage biopharmaceutical company with a focus on creating antibiotics for drug-resistant bacteria, shed more than 78% of its value on Wednesday on huge trading volume after the company released disappointing clinical news related to its lead product candidate – and more down trending is expected.
The company announced that its Phase 3 IGNITE2 clinical trail, which was testing its flagship drug eravacycline's ability to treat complicated urinary tract infections, failed to meet its primary endpoint. The study showed that the experimental antibiotic failed to show show statistically significant non-inferiority when compared to levofloxacin, a currently available generic antibiotic.
Many analysts weighed in on Tetraphase Pharmaceuticals Inc -- TTPH was downgraded…..
• …..by analysts at Cantor Fitzgerald from a "buy" rating to a "hold" rating. They now have a $11.00 price target on the stock, down previously from $50.00. 75.4% downside from the previous close of $44.78.
• …..by analysts at Needham & Company LLC from a "buy" rating to a "hold" rating.
• …..by analysts at SunTrust to a "neutral" rating. They now have a $12.00 price target on the stock, down previously from $54.00. 73.2% downside from the previous close of $44.78.
• …..by analysts at Stifel Nicolaus from a "buy" rating to a "hold" rating.
• …..by analysts at Nomura from a "buy" rating to a "neutral" rating. They now have a $10.00 price target on the stock, down previously from $54.00. 77.7% downside from the previous close of $44.78.
• …..by analysts at Robert W. Baird from an "outperform" rating to a "neutral" rating. They now have a $10.00 price target on the stock, down previously from $41.00. 77.7% downside from the previous close of $44.78.
• …..by analysts at JMP Securities from an "outperform" rating to a "market perform" rating.
• …..by analysts at Wedbush from an "outperform" rating to a "neutral" rating. They now have a $11.00 price target on the stock. 75.4% downside from the previous close of $44.78.
• …..by analysts at Brean Capital from a "buy" rating to a "hold" rating.
TheStreet Ratings team rates Tetraphase Pharmaceuticals as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation…..
"We rate Tetraphase Pharmaceuticals (TTPH) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share."
Thursday, September 10, 2015
Fitbit Inc (NYSE:FIT) Calls
**OPTION TRADE: Buy the FIT Sep 2015 38.000 call (FIT150918C00038000) at approximately $0.60. Sell price is left to your own judgment.
The recent pullback in the company's stock price has created a lucrative entry point for this option trade.
“As the company becomes more mature, FQ3 will be the seasonally down quarter for the company as CQ1 has strength due to New Year’s resolutions, CQ2 has strength due to Mother’s Day and Father’s Day, and CQ4 has strength due to the holidays while CQ3 basically has no such similar drivers.” Seyrafi still expects year-over-year growth in the coming quarter to “more than double,” making the recent pullback an ideal buying opportunity for long term investors.
Thursday, September 10, 2015
Avago Technologies Ltd (NASDAQ:AVGO) Calls
**OPTION TRADE: Buy the AVGO Sep 2015 135.000 call (AVGO150918C00135000) at approximately $0.85. Sell price is left to your own judgment.
Avago Technologies Ltd (NASDAQ: AVGO), a designer, developer and global supplier of a range of analog semiconductor devices with a focus on III-V based products, has just received analyst coverage from Sterne Agee CRT, setting a “buy” rating on the semiconductor manufacturer’s stock.
Also, on August 27th, Brean Capital maintained their rating on the shares of Avago Technologies Limited. The current rating of the shares is "Buy” with a price target to $170 per share.
Several other equities research analysts have also recently commented favorably about the company. It is interesting to note that there have been no less than 25 analysts providing a “buy” or “strong buy” for Avago, compared to one sell and three hold.
Also, Avago Technologies Limited stock has received a short term price target of $ 159.35.
There are several positive factors working for Avago:-
• Avago is more diversified than Qorvo Inc, Cirrus Logic, Inc. and Skyworks Solutions Inc. This has worked in Avago's favor as Apple and Google Inc continue to fluctuate.
• Avago’s last quarter was pretty good, and we profited quite nicely from it. The fact that everybody thought the world was ending and everybody thinks the Chinese market is this huge detriment…the fact that Avago just guided in-line sort of says that business is probably pretty good.
• Avago's wireless (35 percent of sales) benefited from iPhone 6s' pre-builds and the ongoing GS6 ramp.
• Storage (34 percent of sales) benefited from a full quarter of Emulex (following its acquisition earlier this year), as well as strong datacenter demand.
Tuesday, September 08, 2015
Option Trade – The Men's Wearhouse Inc (NYSE:MW) Calls
**OPTION TRADE: Buy the MW Sep 2015 60.000 call (MW150918C00060000) at approximately $0.80. Sell price is left to your own judgment.
The Men's Wearhouse Inc (NYSE: MW), a specialty retailer of men’s suits and a provider of tuxedo rental product in the United States and Canada, will report second-quarter quarter results today after markets close. The company will release its results after the market close, with analysts forecasting earnings of $1.05 per share on revenue of $946.7 million.
The stock is up 24.8% on the year, but has been trending lower since mid-June, which means that there is plenty of uptrend available.
Wall Street was optimistic regarding the company's acquisition of competitor Jos. A. Bank, and generally analyst remain upbeat, with three of the four analysts rating the stock a "strong buy". Analysts see the company greatly benefitting from the Jos. A. Bank acquisition, and have pegged the company to grow earnings by a massive 44% in 2017 vs. 2016.
Four brokerage firm analysts have agreed with the mean estimate for the short term price target of $65.50 for Mens Wearhouse, Inc.
A lot of the recent selling pressure can be tied to volatility in the overall market, and if the company is able to hit the consensus for Q2, Wall Street will take a more bullish tone on the stock and come surging back.
Tuesday, September 08, 2015
Option Trade – Pep Boys-Manny Moe and Jack (NYSE:PBY) Calls
**OPTION TRADE: Buy the PBY Sep 2015 12.000 call (PBY150918C00012000) at approximately $0.50. Sell price is left to your own judgment.
The auto industry has been doing pretty well as of late, which is a big reason why auto parts retailers have held up well during the recent market volatility. While new car sales are good, the average age of cars on the road is at an historic high, and older cars need a lot of parts to keep them road-worthy. This is where companies such as Pep Boys-Manny Moe and Jack (NYSE: PBY), a provider of shop and care for cars, does so well. PBY will report its second-quarter results after the market closes today, September 8. Analysts expect quarterly earnings of $0.09 per share on revenue of $530.7 million. The stock is up 21.6% on the year.
The drop in oil prices has also been very favorable as this leads to lower gas prices, which in turn results in higher miles being put on cars. Older cars and higher driver miles should lead to more demand for auto parts and supplies. PBY has been growing earnings nicely, and if the company is able to hit the consensus for its second-quarter the stock should be able to build on its recent momentum.
Analysts are also bullish on Pep Boys giving a shorter term basis of a projected price target of $15 on the equity. Yesterday Zacks upgraded PBY from a “hold” rating to a “buy” rating and last Friday Northcoast Research initiated coverage on Pep Boys-Manny Moe and Jack in a research note on Friday, August 28th. They issued a “buy” rating for the company.
According to Zacks, “Pep Boys’ first-quarter fiscal 2015 earnings surpassed the Zacks Consensus Estimate, but decreased year over year. Revenues, however, increased year over year, but marginally lagged the Zacks Consensus Estimate. Pep Boys will benefit from the expansion of business through its Road Ahead strategy. Also, its strong financial position will be favorable in the long run. Benefits from the increasing average age of vehicles, will further boost the results of the company. However, it faces challenges due to rising expenses associated with the Road Ahead strategy, high inventory levels and increasing competition. Nevertheless, the company is undertaking initiatives to reduce its inventory.”