Zillow Group - ZG - Seasonal bottom in Nov-Dec each year
Notice what you see on Zillow's chart, that the seasonally slow time of the year for real estate is when ZG has bottomed.
It bottomed meaningfully in 2011-2012-2013 and was only a trading bottom in 2014.
We could see the same pattern again this year, and today is the earliest bottom that we saw from last year.
Real estate is a seasonal business and now that employment statistics are turning up with today's 271,000 jobs number, maybe it will make investors look around the corner at beneficiaries of strong wage growth.
Overall: Risk is high because Zillow is a volatile stock and trades in a roughly 5% range each day. The 2015 range is about 100% (from 21-42) versus the S&P500 at only 15% high to low. So, it is 6 TIMES more volatile than the stock market on an annual basis and 4 times more on a daily trading basis. So keep that in mind.
EPS have already been reported and the stock had better than expected earnings (actually a loss of 9 cents, but expectations were for a loss of 18 cents). So you don't have "earnings risk" at the moment, which is a bonus.
I'm buying half here and leaving half to buy sometime later this month or early next month. ZG is up to 27.70 as I type now and I started typing when it was 27.25 at the low of the day. My point: The stock is volatile.
You can also look at symbol: Z which is also Zillow. There are voting shares and non-voting shares. The non-voting shares are the lower priced of the two.
Tim
10:22AM EST November 6, 2015 ZG 27.53bid x 27.57ask last.
It bottomed meaningfully in 2011-2012-2013 and was only a trading bottom in 2014.
We could see the same pattern again this year, and today is the earliest bottom that we saw from last year.
Real estate is a seasonal business and now that employment statistics are turning up with today's 271,000 jobs number, maybe it will make investors look around the corner at beneficiaries of strong wage growth.
Overall: Risk is high because Zillow is a volatile stock and trades in a roughly 5% range each day. The 2015 range is about 100% (from 21-42) versus the S&P500 at only 15% high to low. So, it is 6 TIMES more volatile than the stock market on an annual basis and 4 times more on a daily trading basis. So keep that in mind.
EPS have already been reported and the stock had better than expected earnings (actually a loss of 9 cents, but expectations were for a loss of 18 cents). So you don't have "earnings risk" at the moment, which is a bonus.
I'm buying half here and leaving half to buy sometime later this month or early next month. ZG is up to 27.70 as I type now and I started typing when it was 27.25 at the low of the day. My point: The stock is volatile.
You can also look at symbol: Z which is also Zillow. There are voting shares and non-voting shares. The non-voting shares are the lower priced of the two.
Tim
10:22AM EST November 6, 2015 ZG 27.53bid x 27.57ask last.
Trade active:
Looking good right here in the middle of the targeted entry zone.
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