Analysis of Advantage Solutions Inc. (NASDAQ: ADV): $200Analysis of Advantage Solutions Inc. (NASDAQ: ADV) for Short-Term Investment Strategy
Volatility and Recent Performance
Beta: 2.24, indicating high volatility compared to the market.
Recent Price Performance:
1 Week: +26.26%
1 Month: -13.19%
3 Months: -6.37%
6 Months: +41.24%
Year to Date: +20.19%
1 Year: -3.1%
Market Position
Market Capitalization: $0.806 Billion USD.
Sector: Advertising & Marketing.
Business Description: Provides outsourced solutions to consumer goods companies and retailers.
Support and Resistance Levels
Current Price: $2.50 USD.
Price Target: $3.50 USD (average), with a high of $4.00 and a low of $3.00.
Resistance Level: Near the price target of $3.50 USD.
Support Level: Difficult to determine exact levels without a detailed price chart, but considering recent lows and the current price, a support level could be around $2.00 USD.
Setting Up a Stop Loss
Suggested Stop-Loss Level: Slightly below the support level, e.g., around $1.90 USD, to limit potential losses.
Dollar-Cost Averaging and Profit Target
Dollar-Cost Averaging: Invest your $200 in smaller, equal portions over a set period to reduce the impact of volatility.
Realistic Profit Target: Considering the high volatility and current market trends, a modest profit target of 10-15% could be reasonable. This would mean selling around $2.75 to $2.88 USD.
Additional Considerations
Financial Strength: Current ratio of 1.8, but a high long-term debt-to-equity ratio of 178.1.
Profitability: Negative net profit margin and operating margin.
Analyst Opinion: Average investment opinion is a 'hold' with a consensus EPS of $0.53.
Conclusion
Advantage Solutions Inc. presents a high-risk, potentially high-reward scenario for short-term investment. The strategy involves buying near the support level, setting a stop-loss to manage risk, and selling near the resistance level for profit. Regular monitoring and adjustment of the strategy based on market changes are crucial. Remember, this analysis is not financial advice, and investing in the stock market always carries risks.
ADV trade ideas
ADV Harmonics: Long-Haul Easy trade!Here is a bullish bat-harmonic pattern that I expect to complete in several weeks to a month. On the back of this bullish-bat harmonic is the potential setup of a deep-crab harmonic with it's extension at $17. This trade seems to be indicating a potential 100% gain over several months. Please see the chart for the exact entry price. If the trade goes sideways, do not allow for more than a 5% drawdown. Good luck, trade safely, and let's make that money!
$ADV can rise in the next daysContextual immersion trading strategy idea.
Advantage Solutions Inc. provides outsourced solutions to consumer goods companies and retailers in North America and internationally.
The demand for shares of the company looks higher than the supply.
This and other conditions can cause a rise in the share price in the next days.
So I opened a long position from $10,96;
stop-loss — $10,38.
Information about take-profits will be later.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
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Short term predictionI've added 3 arrows. These are what I believe to be the 3 most likely general moves that could be made in the short term; A, B & C. Of the 3, I believe that B is most probable as the MACD also seems to be informing us of this move. Staying near or above the yellow line is the most bullish scenario, but not the only one. Time will tell.
ADV is spicyThe yellow trend line has held incredibly well so far. I don't expect it to stay within the channel for ever, but I think it might have at least one more push before falling back to the orange trend line. I believe the dump upon the merger was the catalyst for a new bullish trend. Added volatility couldn't hurt. Ultimately I think this stock will probably get close to the $20 level in the current cycle, however long that takes. Could continue a steady uptrend for several months or longer.
ADV option strategy update*this is not financial advice*
I've updated the colors of the lines, but I have not changed the angles or positions of the lines from my first post. The blue line is the top of the channel, the yellow line is what I've determined to be the bottom of the channel, and the orange line is a sort of "last stand" for bullish momentum. So far, this price has been moving between the blue and yellow lines.
The volatility is here. I don't believe this stock needs hype or press to maintain an uptrend, but any hype or positive press that does occur, could boost the price action significantly. I am predicting a price near or above $15 by the end of May 2021. The call options for anything above $12.5 by the end of Feb 2021 are $0.01 currently.
I paid a higher premium simply to get the orders to go through, I purchased my options at a 90-98% loss upon the orders being filled. Even before the dump at the merger... however, my losses were (and are) already locked in, and so there is no further down side. This is a very risky strategy, but with the potential for the price of the options to jump tens of thousands of percent by the strike price merely becoming more reasonable, drawing more interest to the contract. There is a high risk on this strategy that there will be no interest in the options to sell, thus it is very possible that the contracts will expire worthless. But the beauty is that it only needs buyers to believe that $12.5 or $15 strike price seem reasonable. If my near $15 prediction is correct, this will be an epic play. If I'm wrong, well then I've lost everything I put into the trade. It will be interesting to see how this works out.
ADV getting interestingThe 3rd presidential debate, coinciding with record covid cases, and the ADV merger. Was a day that many stocks took a hit. For this one, it looks to me it looks like a potential catalyst in the charts. I've drawn 2 channels, it's broken the down trending channel. Large spac, now post merger.