New Stock Pick Long Dice Holdings ($DHX) & Short Monster Worldwide ($MWW)

By: ispeculatornew
Date posted: 06.11.2012 (4:36 am) | Write a Comment  (0 Comments)

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Today, I am back opening a new trade that I have actually done several times, mostly with success as I am opening a new trade featuring 2 online employment posting companies that compete to some degree but are incredibly different in many other ways. Let’s start off by looking at the number for Dice Holdings and Monster Worldwide:

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Long Dice Holdings (DHX)

Dice Holdings is a named I have often traded, with success, in recent years. I feel like because of its name and the fact that its brand is nowhere close to one like MWW, it constantly becomes undervalued. The company has a strong focus, good fundamentals and seems to be much more focused on its strengths compared to a company such as MWW.  Its forward P/E of 14 is certainly good enough considering its recent growth.

I am not a momentum trader but still look at Trend Analysis numbers, this trade looks decent from that perspective.

Short Monster Worldwide (MWW)

Monster is one of those companies that I was down on in the my 2012 Tech Stock Power rankings and it has not been doing so well either, as sales and earnings growth continues to be very low. I simply don’t think it warrants its current valuation, especially when you consider how competitors such as LinkedIn will continue to take MWW’s global market.

 

Disclosure: No positions on Dice Holdings (DHX) or Monster Worldwide (MWW), this trade will be opened on Monday morning

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