ASO , A market leader in the making .
ASO did an ipo in Oct 2020 , they are not a new company , operates 259 stores in US . Founded in 1938.
I noticed that they are exhibiting signs of strong leadership especially seeing how when the market was correcting and putting in a bottom (03/08/21) ASO seemingly had no issues holding their base ranges . We have formed a second base since as the stock has a "normal reaction" to gains and it looks like based on Fridays wicking that the buyers are ready to take control and resume the climb . Funds are still finding this but the number of funds is increasing and there are some high quality players in the pool too . 146 Funds with holdings as of March 2021.
Sales and earnings show nice growth trends , and institutions are already holding a decent portion of float and clearly supporting it . I see this has a high short float at 16.33% with a 7 day ratio. Honestly, based on fundamentals this is the last stock you would want to short imo, solid fundamentals and nice technicals too. But the reason I mention that short float is that it could actually simply serve as an added price boost as those bearish players are squeezed . Unless they know something we don't but ill follow the volume , sales/ eps , and institution's .
I noticed that they are exhibiting signs of strong leadership especially seeing how when the market was correcting and putting in a bottom (03/08/21) ASO seemingly had no issues holding their base ranges . We have formed a second base since as the stock has a "normal reaction" to gains and it looks like based on Fridays wicking that the buyers are ready to take control and resume the climb . Funds are still finding this but the number of funds is increasing and there are some high quality players in the pool too . 146 Funds with holdings as of March 2021.
Sales and earnings show nice growth trends , and institutions are already holding a decent portion of float and clearly supporting it . I see this has a high short float at 16.33% with a 7 day ratio. Honestly, based on fundamentals this is the last stock you would want to short imo, solid fundamentals and nice technicals too. But the reason I mention that short float is that it could actually simply serve as an added price boost as those bearish players are squeezed . Unless they know something we don't but ill follow the volume , sales/ eps , and institution's .
Comment:
ASO once again strong on a weak day for the markets , was tempted to taka a starter today but I will wait for a break up with good relative volume .
Comment:
Offering announced amc , it's just private share holders selling from the existing shares outstanding , not on the public float . Not a big deal in my opinion as it' not dilutive . Could be a buying opportunity for some .Personally, I still want to see price action to confirm entry . I will copy and paste the relevant paragraphs below from offering .
Quoted Text....
KATY, Texas, May 3, 2021 /PRNewswire/ -- Academy Sports and Outdoors, Inc. ("Academy") (NASDAQ: ASO) today announced that certain of its stockholders (the "Selling Stockholders"), including affiliates of Kohlberg Kravis Roberts & Co. L.P., intend to offer for sale in an underwritten secondary offering 14,000,000 shares of common stock of Academy pursuant to a registration statement filed by Academy with the U.S. Securities and Exchange Commission (the "SEC"). The Selling Stockholders expect to grant the underwriters a 30-day option to purchase up to an additional 2,100,000 shares of Academy's common stock. No shares are being sold by Academy. The Selling Stockholders will receive all of the proceeds from this offering.
Quoted Text....
KATY, Texas, May 3, 2021 /PRNewswire/ -- Academy Sports and Outdoors, Inc. ("Academy") (NASDAQ: ASO) today announced that certain of its stockholders (the "Selling Stockholders"), including affiliates of Kohlberg Kravis Roberts & Co. L.P., intend to offer for sale in an underwritten secondary offering 14,000,000 shares of common stock of Academy pursuant to a registration statement filed by Academy with the U.S. Securities and Exchange Commission (the "SEC"). The Selling Stockholders expect to grant the underwriters a 30-day option to purchase up to an additional 2,100,000 shares of Academy's common stock. No shares are being sold by Academy. The Selling Stockholders will receive all of the proceeds from this offering.
Comment:
Todays wick looks promising , buyers came in strong , especially on a red day . Took a starter based on this logic
Comment:
This is progressing nicely , tempted to sell some , but the price action looks so nice so I am going to hold . Will be watching for any warning signs signaling to lock in some profit . Looks like we will close within the base still .. Market is looking weak too . Might need to spend some more time basing before a BO. Looking good though ..Would be great if we can break out of base and retest base highs.
Comment:
Changed my mind , locked in profits , very happy to re-enter . Out for now .
Comment:
Great open , back in at 34.94 with todays price action, stop 33.19
Trade closed: stop reached:
Have been stop out of this with the market conditions , going to step back from new trades unless they are short term or hedges . Close to cash at 30% exposure at this time.
艾力克~