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- Take Advantage of Today’s Bizarre Economic Conditions
- Dynatrace Shares Soar 46 Percent in IPO
- Unusual Options Activity: Pan American Silver (PAAS)
- Insider Activity: Watford Holdings (WTRE)
Take Advantage of Today’s Bizarre Economic Conditions Posted: 02 Aug 2019 01:11 PM PDT SPONSORED CONTENT Retire Rich on One $3 StockDear Reader, Picture the perfect stock for a moment. What would it look like? No doubt it would have hundreds of billions in revenue – more than tech giants like IBM, Facebook and Google. It would probably be a leader in cutting-edge technology like smartphones, robotics, e-commerce and medical equipment. It would have tens of thousands of unbreakable patents. It would pay an enormous dividend. It would be on the verge of dozens of blockbuster announcements that would send the stock higher and higher. And most of all… It would trade ultra-cheap – less than $3. It seems crazy that such a stock exists. And you’ve likely never heard of it. Why? Because it trades under a secret name. Seriously, it’s true. My colleague – stock-picking legend Alexander Green – just gave the most shocking live presentation regarding this “perfect stock.” He says this single stock alone could pay for your retirement. Sincerely, Matthew Benjamin Editorial Director, The Oxford Club P.S. A huge announcement coming in August – involving Trump, America’s No. 1 tech company and $10 billion – could bring this secret $3 stock into the light. Find out what they have planned here. |
Dynatrace Shares Soar 46 Percent in IPO Posted: 02 Aug 2019 03:00 AM PDT Tech software company goes public. In a strong year for companies to go public, Thursday saw the IPO of Dynatrace as well. Shares were priced at $16, but opened for trading at $25.50, giving the company an approximate valuation of $7.2 billion. All told, the company sold 35.6 million shares, and raised $544 million in capital. Shares trade under the ticker DT.
Dynatrace uses artificial intelligence and machine learning software to help companies monitor and manage their business applications. At present, the company has about 2,300 customers, with over 1,300 on its high-end software intelligence platform. The company is the leader of the application performance market. Shares traded as much as 59 percent higher from the IPO, but closed about 46 percent higher. Action to take: While consumer tech companies like Uber and Lyft have had a challenging IPO, where the shares have struggled to move above the initial price, Dynatrace is showing strong performance out of the gate. However, as always, we caution investors on an IPO, which is designed to pop at the open. We suggest waiting to see how the company performs operationally as a publicly-traded company, and to wait at least six months to see how the company insiders handle their shares as their lockout period where they can't sell shares ends. This includes Thoma Bravo, the private equity firm that still owns over 200 million shares, or about 70 percent of the company. |
Unusual Options Activity: Pan American Silver (PAAS) Posted: 02 Aug 2019 03:00 AM PDT Big bet on a silver rally through September. On Thursday, traders bet on a higher price for the silver space thanks to a large options bet on Pan American Silver (PAAS). The September $18 call options saw over 26,700 shares trade, a 151-fold explosion in volume higher. With shares of the stock around $15.75, shares would need to move 14 percent higher in the next 49 days to move in-the-money. Pan American Silver is a mining company with a focus on silver operations. Traders interested in precious metals and looking for leverage tend to gravitate towards silver because it moves higher on a percentage basis than gold when the precious metals rally. Action to take: The uncertainty created by the Fed's press conference after cutting interest rates on Wednesday should have moved precious metals higher, not lower. With a cost around $0.48, or $48 per contract, this is a good bet on a quick rebound in the precious metals space in the coming weeks. Traders looking to manage their risk may want to buy a call with a January 2020 strike price to give themselves more time for the trade to play out. The autumn months tend to be weak for markets as a whole, but decent for the precious metals space. |
Insider Activity: Watford Holdings (WTRE) Posted: 02 Aug 2019 03:00 AM PDT Multiple insiders pick up reinsurer's shares. On Wednesday, July 31st, multiple insiders bought shares at Watford Holdings (WTRE). Those buys included 25,000 shares by CEO John Rathgeber, 25,000 shares by director Nicolas Papadopoulo, 2,500 shares by CFO Alexandre Scherer, and 1,500 shares by Chief Risk Officer Jon Levy. Collectively, these insiders bought over $1 million in shares. Insiders have been buyers of the company earlier in the year, with a large cluster of buys back in May at far higher prices. Watford Holdings engages as a property, casualty, and mortgage insurance and reinsurance company worldwide. Founded in 2013, it is headquartered in Bermuda and shares just went public earlier this year. The company is currently trading at a loss, but looks to trade at just five times forward earnings. Revenue growth has been flat, but earnings growth is up 33 percent in the past year. On a valuation basis, the company has a high level of debt, which isn't unusual for a reinsurance company. The company does trade around 0.5 of its book value, however, meaning if the company closed up shop it would likely be worth about twice as much as the current share price. Action to take: We like the overall long-term stability of the reinsurance industry. With insiders already picking up shares in the high $20's near the IPO price, the opportunity to buy shares at or under $20 looks particularly attractive here. |
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