LB Bullish Bat Completed in LOW LocationConfluences could lead to Big Reward with Minimum risk! Aka: Value Investing
On Daily Chart Price has shown:
- Strong support from $21 - $22
- Down-Trend line was broken
- Bullish Bat completed at LOW location on chart
- RSI Oversold
1:2 Risk/Reward ratio
Chance of large long term gains if weekly bearish bat is completed around $34
LB trade ideas
$LB SURPRISE BEAT ON EARNINGS FOR L BRANDS, OMG PROFIT.Shares of LB have rallied on Thursday morning as a result of the company announcing a surprise profit in the quarter and also raising guidance for the year to come. This could result in a massive rally in the days to come as the stock has lost 40% of value in 6 months and was actually down 5% yesterday prior to the earnings report.
COMPANY PROFILE
L Brands, Inc. engages in the retail business. It is focused on women's intimate and other apparel, personal care and beauty categories. It operates its business through the following segments: Victorias Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International. Its brands include Victorias Secret, Bath and Body Works, Pink, La Senza, and Henri Bendel.
LB BUY WEEKLY 15.87% TP 37.74 SL 29.87After the August / 2017 report the shares rose 78.98% until December 2017 at the high of 63.26, after that period it plummeted 53.12% 33.47 pip.
In the past report rose 10: 90% on 05/24/2018 forecast for tomorrow 15.87% 5.17 pip 08/23/2018 and the second half equal to 2017.
LB BUY WEEKLY 15.87% TP 37.74 SL 29.87
$LB Buy the blood under $30 if over / under holdsCompany guided down yet once again but there is +ve divergence in the long term chart. Shark did x3500 risk reversals into the earnings print and sold 30 puts and bought 34 calls for $0.25 for Aug24 this week expiry. Couple horizontal areas come into play in the low 30s and high 20s...
I am thinking an opening washout to sub $30 and then accumulation possibly. Looking for seller exhaustion.
It is worth a nibble sub $30 for just this potential on a proper bottoming formation intraday.
Normally this is yet another short no doubt but it smells like a potential hedge fund accum target. "potentially" or the shark just got hosed :)
We wait for more clues.
L Brands (LB) stock: will it bounce back?The company as an established record of beating earnings estimates--the average surprise for the past two quarters was 8%.
However, the overall retail environment is not very favorable. Retail and department store sales have taken a hit as e-commerce expanded, providing tough competition.
L Brands' revenue per store has declined in the past two years, and the number of new store openings is record low--only one in 2017. The company is now focused on international markets growth; by-and-large, it is ignoring poor results in the United States.