TRUWORTHS INT (TRU)I have been monitoring TRU's trend since its breakout on January 16th. However, it's important to consider the bigger picture of its price action. TRU has been moving sideways in a clear pattern, with repeated fluctuations around earnings results that typically result in a price decline.
It's possible that this pattern will repeat itself once again?
Earnings
CVR Partners $UAN a deep value play for 2023NYSE:UAN
A cheap fertilizer producer with strong fundamentals is a strong bet for 2023. Latest ER reported strong Revenue and EPS beats despite Russian fertiliser exports being at all time highs.
MR Quarterly production was impacted by maintenance - this work has been completed and it is likely that production volumes will return to normal this coming quarter likely boosting revenues this year.
Macro factors e.g. war in Eastern Europe will likely add uncertainty to the availability of fertilizer along key transport routes to western Europe as sanctions against Russia take effect - shipping routes from Turkey will likely be impacted.
I expect this stock has 20% upside by end of 2023 excluding dividend.
CRM Setting Up for Earnings Next WeekCRM reports earnings next week. This was a pre-earnings run that settled into an unstable sideways trend and then went down due to a lack of strong retail buying.
Volume is exceedingly low to the downside. This is not a sell short setup. Buy zone support is too close from the bottom formation.
NVDA had a similar pattern and gapped up on its earnings release news.
Google earnings todayGOOG Q4 earnings are today, 2/2 at 4:15pm. Alphabet Cl C (GOOG) reported Q3 September 2022 earnings of $1.06 per share on revenue of $69.09 billion. The consensus earnings estimate was $1.26 per share on revenue of $70.64 billion. Revenue grew 6.1% on a year-over-year basis. Here's a GOOG 1 week chart with the past 8 earnings reports PE, EPS, revenue, cash & debt data indicators. Plus 2/3, 2/17 and 3/17 expiry options data.
Q4 December 2022 Consensus:
EPS = $1.19
Revenue = $76.48B
P/E = 21.7
Q3 September 2022:
EPS = 1.06 miss -16.01%
Revenue = $69.09B miss -2.20%
Cash = $21.98B
Debt = $26.63B
Q2 June 2022:
EPS = 1.21 miss -6.05%
Revenue = $69.68B miss -0.16%
Cash = $17.94B
Debt = $26.43B
Q1 March 2022:
EPS =1.23 miss -3.67%
Revenue = $68.01B beat 0.18%
Cash = $20.89B
Debt = $26.25B
2/3/23 expiry options data:
Put Volume Total 17,149
Call Volume Total 30,081
Put/Call Volume Ratio 0.57
Put Open Interest Total 50,820
Call Open Interest Total 54,156
Put/Call Open Interest Ratio 0.94
2/17/23 expiry options data:
Put Volume Total 5,472
Call Volume Total 19,575
Put/Call Volume Ratio 0.28
Put Open Interest Total 96,153
Call Open Interest Total 104,606
Put/Call Open Interest Ratio 0.92
3/17/23 expiry options data
Put Volume Total 4,332
Call Volume Total 14,527
Put/Call Volume Ratio 0.30
Put Open Interest Total 156,883
Call Open Interest Total 224,859
Put/Call Open Interest Ratio 0.70
Has Block Bottomed?Block was a prominent growth stock before and during the pandemic. Like most companies of that type, it fell sharply between late-2021 and late-2022 as interest rates rose. But now it may be showing signs of bottoming and potentially turning higher.
The first pattern on today’s chart is last November’s high of $75.77. SQ broke above that level in late January and held it this week. Has old resistance become new support?
Second, the 50-day simple moving average (SMA) is back above the 200-day SMA for the first time in over a year. That kind of “golden cross” may suggest the longer-term uptrend has grown more bullish.
Third, the lower study features our 2 MA Ratio custom script. It uses the default settings of the 8- and 21-day exponential moving averages (EMAs). Notice how the fast EMA remained above the slower EMA during the latest pullback.
Finally, SQ jumped on November 4 after earnings and revenue beat estimates. That may keep traders focused on the fintech with the next set of numbers due after the closing bell this coming Thursday, February 23.
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PCT LongPureCycle Technologies, Inc. (PCT) produces recycled polypropylene (PP). PureCycle plans on developing a polypropylene recycling facility in Belgium and the company believes the facility has the potential for a total annual capacity of 500 million pounds. PureCycle is currently engaged in feedstock sourcing and financial planning with the intent to secure a final project timeline by mid-2023. Construction of the plant is expected to begin upon completion of the permitting process, which is currently anticipated in 2024. Source: www.prnewswire.com
On 2/9/23, someone bought the PCT 5/19 11C 17,000x 1.07. To me, I believe they must be thinking 12.50-14.00 on a risk-reward basis, which is a a 75% move from where its trading at currently…they are either betting on incredibly good earnings or a upcoming catalyst/announcement.
EBIX Long Options StrategyInternational SaaS and technology company Ebix offers software and e-commerce services to the insurance, financial, travel and healthcare industries. It recently announced that it closed 2022 with record volumes on AnnuityNet4 (AN4) --its annuity exchange platform that handles roughly 70% of the electronic annuity transactions in the industry, integrated with partners such as Cannex, DocuSign, OneSpan, DTCC. Other areas of business include CRM, Forex, and e-learning solutions.
Fundamentally, Ebix has a market cap of 623.2M and P/E of 9.47x -- with price targets from $43-150, averaging $97. TA-oriented investors may spy some consolidation into a falling wedge as well as some possible bullish momentum. But tech stocks in general are volatile in this market, and it's hard to tell if this small cap will chop or rally.
With this options strategy, capture up to 12% (20% annualized) of the potential gain while also allowing EBIX room to fall 63% before losing any of the initial investment.
Hedged like this:
Buy 1 $20 call
Sell 1 $22.5 call
Sell 3 $7.5 puts
Exp 9/15/23
Capital Requirement: $2239
WSC - WillScot Mobile Mini HoldingsSimple base breakout accompanied by a surge in volume, albeit not a massive surge. Would like to see continued volume surges to get a cushion to allow for a hold thru earnings on 2/21.
Great growth numbers, earnings & sales accelerating at a strong pace on a YoY & QoQ basis.
AMZN - Victim Of Its Own SuccessAmazon, Inc. What's wrong with that title? It's not quite the official name of the company. The company colloquially referred to as "Amazon" by anybody and everybody from my Grandfather to teenage girls at my high school, both looking to shamelessly devolve into consumerism from the nearest smartphone or web browser, has an undeniable grip on the modern world. The correct name for AMZN, as it's listed on the NASDAQ, is Amazon.com, Inc. This title, a remnant of its dotcom era IPO, indirectly serves today to remind investors of Amazon.com, Inc's massively profitable cloud computing division, which operates completely separately from its retail division, and which pushed its common stock to almost a 1.7 Trillion dollar valuation at the end of 2021.
It's hard to say anything bad about Amazon.com, Inc's cloud computing business. Its market share is larger than Google and Microsoft's share combined in the same industry (Q3 2022 Data according to Statista). Big names like Netflix, Facebook, and Twitter use their services. Their service quality is high and has data centers around the globe. Its growing extremely fast.
The Catch: Current macroeconomic headwinds are causing many businesses to cut back spending, and AWS is seeing this effect their bottom line. AWS still grew 20% year over year in Q4, but short of the expected 27.5%. This moderate slowing in its massive growth might be normally acceptable by investors to some degree.
Except, it's not. AMZN trades at a sky-high PE of 68; After already losing more than 700 Million dollars in market cap since its peak in 2021. This ratio relies heavily on aggressive growth models for the company.
AMZN's PE ratio has always been this way. Overzealous investors have been willing to pay this premium to get ahead of the massive profits AWS consistently posted. In many tech companies, excessive growth valuations have often been justified by certain rock solid keystone statistics (think: META's daily user count). Yet, growth is in practice finite, and a peak in these statistics forces multiples return to earth. The current market conditions and complex nature of the cloud computing industry could make the peak more difficult for investors to identify, but barring explosive cloud growth in future quarters, the multiple normalization process will take place.
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Screen Setup for Fundamental AnalysisRecently I experimented with TradingView's "fundamental metrics" feature by mixing and matching up the financial information indicators. Finally, created a dedicated layout called "Fundamental analysis" and I like it a lot. Realizing that this feature is receiving less attention than it should be getting, I've decided to share my setup with everyone who's reading this to see.
Setup :
I've split my screen into two sides with (i) symbol, (ii) interval, and (iii) time all synced up.
Left screen : Trend analysis on financial performance (the income statement)
Right screen : Trend analysis on financial position (the balance sheet), along with changes in cash positions (statement statement of cash flows)
They're all just high level breakdowns. We are not trying to come up with companies' intrinsic values by just staring at bundles of colorful rainbow lines.
For each quadrant, I've placed the key Financial Statement Line Items (FSLIs), and key ratios (i.e. activity, liquidity, solvency, or profitability ratios) that are relevant to my decision making process. This is not a standard template because every value investor is different in terms of what they want to see at first sight when presented with companies' financial statements.
TradingView had by default put labels with numbers on them, I removed all of those because I'm just interested in looking at the trends. If I need the exact information, I'll either dig up the SEC filings or go get copies of analysts' reports. But before ever doing that, I want to get a quick mental snapshot of the company's financials.
Example : A quick walkthrough of TSLA (by just looking at the layout as shown in the example) over 5 years; As of latest quarter:
(A) Financial performance wise:
- EBIT and EBITDA had increased, all thanks to ramp up of revenue, and helped by decreasing of COS and OPEX.
- as a common shareholder, it's great to see basic EPS increasing, but beware of dilutive effects
(B) Financial position wise:
- from perspective of a shareholder, it's great to see debt decreasing over time; shown by decreasing in net debt, corresponded by decreasing of D/E.
- with increase in interest cover ratio, it tells that TSLA is starting to make enough money to have enough EBIT to cover their finance costs; good
- overall liquidity wise, there had been decrease in quick ratio. This is explainable due to increase of inventory as shown by the gray line. This is okay, as long as inventory turnover is stable going forward (inventory activity ratios can be added if wanted, but I just plotted total inventory; normally I just want to know whether companies hold inventories or not).
Advantage of this setup :
- I can go through my TradingView watchlists and spend just 5 to 10 seconds on each company to get brief insights of their fundamentals.
Disadvantage of this setup :
- The scale is a problem. By default, they are auto-fitted. Due to nature of different FSLIs and ratios, you cannot resize them to obtain a meaningful universal scale. Be careful when deciding to work with comparatives with this setup. Example: if you look at basic and diluted EPS, it seems like the dilutive effect is immaterial because the lines are are stacked up. But if you look at the scales, they're completely different!
AMZN earnings todayAMZN Q4 earnings are today, 2/2 at 4pm. Amazon (AMZN) reported Q3 September 2022 earnings of $0.28 per share on revenue of $127.1 billion. The consensus earnings estimate was $0.22 per share on revenue of $126.4 billion. Revenue grew 14.7% on a year-over-year basis. The company said it expects Q4 revenue of $140 billion to $148 billion. Here's an AMZN 1 week chart with the past 8 earnings reports PE, EPS, revenue, cash & debt data indicators. Plus 2/3, 2/17 and 3/17 expiry options data.
Q4 December 2022 Consensus:
EPS = 0.15
Revenue = $145.40B
P/E = 96.5
Q3 September 2022:
EPS = 0.28 beat +35.53%
Revenue = $127.10B miss -0.29%
Cash = $35.17B
Debt = $128.25B
Q2 June 2022:
EPS = -0.20 miss -270.72%
Revenue = $121.23B beat 1.76%
Cash = $37.7B
Debt = $124.577B
Q1 March 2022:
EPS = -0.38 miss -190.58%
Revenue = $116.44B miss -0.53%
Cash = $36.6B
Debt = $113.287B
Q4 December 2022:
EPS = 1.39 beat +657.12%
Revenue = $137.41B miss -0.13%
Cash = $36.48B
Debt = $116.395B
2/3/23 expiry options data:
Put Volume Total 91,854
Call Volume Total 141,512
Put/Call Volume Ratio 0.65
Put Open Interest Total 232,469
Call Open Interest Total 286,708
Put/Call Open Interest Ratio 0.81
2/17/23 expiry options data:
Put Volume Total 35,737
Call Volume Total 130,457
Put/Call Volume Ratio 0.27
Put Open Interest Total 368,246
Call Open Interest Total 646,114
Put/Call Open Interest Ratio 0.57
3/17/23 expiry options data
Put Volume Total 20,571
Call Volume Total 55,465
Put/Call Volume Ratio 0.37
Put Open Interest Total 402,933
Call Open Interest Total 659,330
Put/Call Open Interest Ratio 0.61
On 1 Feb 2023 Indian FM Will Talk on Crypto Regulations.......On 1st Feb Indian Finance Minister Nirmala Sitharaman is going to announce budget of India. I am expecting that she will definitely talk about crypto regulations in India.
As Wazirx is leading exchange in india right now, if something positive is for indian crypto community then WRX coin and other well reputed indian tokens will pump hard on tht day. So lets trade this upcoming new
This trade is completely based on news, if something unfavorable news comes WRX will dump too...
ARHS - Arhaus, Inc.Very nice reaction off of the 9ema this morning. Largest 30-min volume since the gap up on raised revenue guidance.
Started a small position; couldn't justify a full position with the overall market being slightly extended on a short-term basis and showing negative action on the day.
Will look to add over the debut price high of $14 only if the broad market continues its bullish phase. The all-time-high of 14.95 looms overhead, but with the volume & growth on this name, I'd expect it to clear that level as long as the market environment remains favorable.
The FOMC decision and statement on Wednesday will have a major impact on the market environment. Even if I am shaken out of this starter position, I'm keeping this one on my focus list for as long as the environment remains healthy. This has the potential to be a true market leader.
BROS - Dutch Bros Inc.One of the longer-term plays I am watching. IPO'd back in 2021, they don't have much in the way of current earnings, but analyst estimates are expecting big growth over the next couple of years.
Starting to inch its way up the right side of a possible stage 1 base on good volume. Don't need to rush into buying this one - need to let it show me that it is in fact ready to go. As of now, it's still in a downtrend regardless of the constructive action since the start of the year.
AMKR - Amkor Technology, Inc.Top of my focus list going into the upcoming week. Growth numbers are good, increasing number of funds buying shares, earnings still two weeks away.
On a technical basis, a surge in volume took prices thru some key highs and now we're seeing an orderly consolidation with good looking volume patterns.
Ideally, we get another volume surge that takes us thru last week's highs around 30.50.