New Trade: Long Dice Holdings ($DHX) & Short Monster Worldwide ($MWW)

By: ispeculatornew
Date posted: 06.11.2013 (3:00 am) | Write a Comment  (0 Comments)

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I usually open new trades on Monday’s but lacked time to do the research last weekend but here I am today. Before getting started, I’m going to close 2 existing trades with one being a winner and the other a losing trade. Overall, the return of my tech stock picks has improved in the last few months but it’s always volatile so for now I’ll wait and see how things end up going. As a reminder, you can see all of my 2013 tech stock picks here. Here are the 2 trades that will be closed on today’s opening:

Long TripAdvisor (TRIP) & Short Travelzoo (TZOO)

TRIP Chart

TRIP data by YCharts

Long eBay (EBAY) & Short Yahoo (YHOO)

EBAY Chart

EBAY data by YCharts

Today’s new trade is one that I’ve done several times in the past few years, with good success mostly. I trade 2 job seeking sites, Monster and Dice. The rational remains the same on the trade. Before going further here are the numbers on these two companies:

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Long Dice Holdings

I’ve generally felt like Dice has been able to focus on a few key industries and has done very well doing so. They have strong niche websites that help job seeking candidates and companies in specific sectors find each other. That has been a working formula and the growth continues to be solid on all fronts. I don’t see a ton of growth coming but it is valued at a decent P/E ratio of 13.85 (based on next year’s expected earnings).

DHX

Next earnings release: July 25

Short Monster Worldwide (MWW)

Monster has always tried to be the answer to all. It targets every industry in almost every country. That is the type of thing that companies such as AOL (AOL), Yahoo (YHOO) and IAC Interactive (IACI) have been unable to do. It’s incredibly difficult to get that done, especially when a player like LinkedIn (LNKD) seems much better positioned. Monster has seen declining earnings and very low earnings

MWW

Next earnings release: August 2nd

Disclaimer: No position on either Dice Holdings (DHX) or Monster (MWW)

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