by Ian Harvey
March 14, 2019
Momo (NASDAQ: MOMO)
Momo shares surged for the Chinese social video and online dating company, climbing as much as 16.3% on Tuesday after releasing favorable fourth-quarter and full-year results. And, “Mentorship Program Members” are now up 55% potential profits; whilst “Earnings Predictions Members made 172% potential profits on the day.
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
The Trade Details can be found in these articles……
Momo shares surged climbing as much as 16.3% on Tuesday.
The stock's gain followed the release of the company's fourth-quarter and full-year results. Bullishness toward the stock was fueled by the company's higher-than-expected fourth-quarter revenue and non- GAAP earnings per share.
Momo's popularity continues to grow, and will be more so after Momo shares surged on this report. There were 113.3 million monthly active users in December, up from 110.5 just three months earlier and 94.4 million a year earlier. Momo is also doing a good job of getting a larger percentage of its users to pay up for premium services, and the revenue per paying user is also on the rise.
Momo's fourth-quarter revenue was 3.84 billion renminbi (RMB), or $559.1 million. This is up 50% compared to revenue in the year-ago quarter. Non-GAAP earnings per American depositary share (ADS) climbed from $0.53 in the year-ago quarter to $0.59.
Analysts, on average, were expecting fourth-quarter revenue of $532.8 million and non-GAAP EPS of $0.52.
"Q4 was a solid quarter, closing out a fruitful year of 2018," said CEO Yan Tang in the company's fourth-quarter earnings release. "I am pleased with the progress we made in 2018 in product innovation, monetization, financial performance and the strengthening of the Company's position as a leading player in China's open social space."
The Profits after Momo Shares surged…..
So, for “Mentorship Program Members”, who managed to execute this trade recommended by Stock Options Made Easy; a potential profit of 55% was available yesterday. The cost of the call option was $1.00; and climbed as high as $1.55 during Wednesday’s trading.
As for “Earnings Predictions Members” a potential profit of 172% was to be had! The option trade was bought at $1.80 and the price of the option trade had risen to $4.90 during the day.
ANOTHER WIN FOR THE WEEK!
AS ALWAYS THE DECISION IS YOURS!
The company said it expects first-quarter revenue to rise 28% to 32% year over year to between 3.55 billion and 3.65 billion renminbi. But management isn't providing guidance in U.S. dollar terms "due to the recent volatility and uncertainty in foreign exchange rate."
"We look forward to delivering more results to our shareholders in 2019," said Tang.
Momo's platform is still strong and growing particularly after Momo shares surged so much. The acquisition of social dating app Tantan last year helped leverage its success with live video while providing a boost to its paying user count.
Therefore, You may wish to consider a NEW Trade……..
** OPTION TRADE: Buy MOMO JUL 19 2019 40.000 CALL at approximately $3.50.Sell price is left to your own judgment.
As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern. During earnings season this strategy of predicting earnings has been very profitable.
Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been exceptional.
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!
Strategies to Consider……
When To Exit A Trade Based On Earnings?.....Read Article
"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……
Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
If you not a member and interested in being part of this profitable action just CLICK HERE.
OR other memberships.....
.....Mentorship Membership …….CLICK HERE......
....."Earnings Predictions" just click here……