Opening 3 New Long & Short Trades

By: ispeculatornew
Date posted: 09.21.2015 (3:00 am) | Write a Comment  (0 Comments)

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It has taken too long but I am finally able to open a few new trades after closing 2 of the existing ones last Monday. Given the lack of time between now and month end, I prefer doing 3 today with a brief explanation and then getting back to more lengthy explanations.

As is always the case you can see my long & short trades (from 2015 but also past years) here:

http://www.intelligentspeculator.net/livetrades

You can also see the numbers for the 6 stocks that will be traded today here:

TickerNamePricePE RatioPE Next YearReturn YTDSales GrowthAnalyst ratingBook ValueBetaEarningsRevenue/ShareSales 5Y Avg GrowthEPS 5Y Avg GrowthSales 5Y Avg GrowthEPS 5Y Avg Growth
AAPLApple Inc113.4513.1511.654.466.954.4122.031.0610/20/201530.0428.7836.91N/AN/A
FITFitbit Inc40.72N/A41.76N/A174.984.063.18N/A11/05/20156.21N/AN/A11.5513.14
TRIPTripAdvisor Inc68.6447.0926.13-7.9831.93.418.611.6310/22/20158.7126.58N/A-0.92N/A
TWTRTwitter Inc27.92N/A46.14-22.69111.013.586.270.7910/27/20152.32N/AN/AN/AN/A
TZOOTravelzoo Inc9.263.0234.79-27.5-10.213.52.860.5410/16/20159.625.0110.21
YHOOYahoo! Inc30.7442.6146.49-39.34-1.334.2735.681.1710/21/20154.68-4.15N/AN/AN/A

AAPL_FIT_YHOO_TWTR_TRIP_TZOO_chart

$AAPLLong Apple (AAPL) & Short Fitbit (FIT)

-Overall, this trade looks like a clear winner. Apple, despite still being able to grow its top and bottom line in recent quarters continues to trade extremely cheap and was the “cheapest” stock in my list after my initial screening. Fitbit on the other hand is a clear play on wearables and while the recently turned public company continues to display growth, I’m personally extremely sceptical after dealing with the company over a few years. That being said, FIT has been doing extremely well in the markets and it’s always a bit of a risk to short a company with this kind of momentum. Time will tell.

$TRIPLong TripAdvisor (TRIP) & Short Travelzoo (TZOO)

I continue to be a strong believer in TripAdvisor as the long term dominant player in the online travel space. A few names such as Priceline (PCLN) will certainly remain extremely strong but any time I a competitor trading at a much higher forward P/E, I’ll look at the trade opportunity and this time I’m ready to go ahead and trade it.

$TWTRLong Twitter (TWTR) & Short Yahoo (YHOO)

On these particular names, I have very different views. Basically, Twitter is a name where I see decent upside and very limited downside at these levels, even with everything that is going on. Yahoo is almost the opposite with very little upside and bigger downside. For this type of trade, it’s a great combination.

Disclosure: I have long term sustainable positions on both Apple (AAPL) and TripAdvisor (TRIP)

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