US Stock In Play: $EE$EE - Utilities
newly IPO-ed during the weakest phase of the market. 7 wks basing pattern within a 25% range from IPO price displays resilience in price action
traded to its ATH with two days of v
Ipobase
ROLEX RINGS - VCP formation (IPO base)The tape has formed an IPO base.
Volume dries up as price compresses.
Tape is drifting sideways around 21 EMA.
Inside candles.
Pivot buy at 1194
SL below mother candle low @1130
Entering half qualtities at CMP 1170; rest half at buy-stop price of 1194 as having conviction that price will breakout from pivot, will exit if mother candle low is broken.
Publishing for my own reference.
Not an investment/trading advice.
Clean science to the moon!IPO base breakout.
Fundamentally very strong.
Refer the chart for details.
SGH using IPO base resistance as support!* Great accelerating earnings
* Breaking out of its IPO base
* High 3-month relative strength in the Tech sector
* Using the broken resistance of the IPO base as support
* Formed a cup and handle pattern
* Holding up really well even in a correction
* Has been consolidating right above broken resistance for the past 4 weeks.
* Maximum probable ROI is ~41%
* Depth of the base is at ~70%
* Has been forming the base since 2018 so ~70% move up isn't unlikely
Trade Idea:
* Given the nature of the current market and if you don't mind a little volatility, now would be a great time to enter as it's constructing a new support around the $56.69 area.
* If you're looking for a slight discount you can look for an entry around the $56.69 area given it's acting as support
Caution:
* A daily close below $56.69 would negate the idea.
* Given the market conditions and your risk tolerance use your judgement as to where you should enter.
* A daily close below $56.69 could have the price around $53.73
APP breaking out of IPO base* High relative strength
* Breaking out of IPO base with slightly higher volume than average
* May consolidate and use $90 as support before moving higher.
PECO breaking out of IPO base!* General up trend
* Breaking out of a 2 month IPO base
* First broke the 30.40 level and turned it to support. Then broke the 31.13 level and has been testing it as support for the past 6 days.
* High relative strength; relative to the real estate market.
* Breaking out with higher than average volume
* Still close to the broken level.. Great time to buy
Unheard gross margins of 95% and a $800B TAM : $GDRXGoodRx is a free-to-use service that allows Americans to find the lowest-cost prescription drugs in their area. The company makes money by receiving a commission for every prescription order filled via its coupons, which are accepted by nearly all 70,000 pharmacies across the country.
-Most Downloaded medical app in US with 4.8/5 rating(700,000+ reviews)
-Partnership with Kroger
-Competing with TDOC with the launch of HeyDoctor
- Rising prices of pharmaceuticals and their mission is to lower the cost of healthcare
-95% Gross margin (What?!?!). 30% Operating margin.
- $75M Free cash flow.
- TAM $800 Mn
- NPS 86
- 4.6/5 Glassdoor
- Founder led
Concerns,
1. P/S of 37.1 and 201 PE. Average PE in healthcare is 24.
2. IPO hype(good for trades though)
3. 94% of top line revenue still coming in from prescription stream(concentration risk?) which grew 42% Q1.
4. Regulations
5. International expansion?
6. 4 holders own 60-65% of the company(Both good and bad)
TA,
1. Wedge breakout
2. Potential base of Cup.
3. Low volume on Pullback
Not a long term position yet. Swing trade.
Entry : break of 52
Stop loss : 49 (-7.8%)
Potential IPO base $LMNDPotential IPO base
"90 seconds to get insured. 3 minutes to get paid"
If you haven't already noticed, we are living in a world of immediate gratification. Insurance is just another sector that's ripe to be disrupted by better efficiency.
TA,
- Increasing volume and consolidating at previous highs $69.
FA,
- Disrupting the archaic industry of insurance
-High NPS score of 70. Industry average is 70.
- $5 Trillion TAM. Current market cap is $3.8Bn
- Huge barrier between insurance companies and customers. Making claims is a headache. Lemonade is bridging that gap through better customer service by leveraging the powers of AI. AI JIM and AI MAYA
- +167% revenue growth 2020
- Expansion beyond US. France is next by end of 2020.
- Only 3 types available still. Renters, home and pet insurance. More potential for other types
Concerns,
- Still not fully convinced of the business model
-Continued losses(side effect of disrupting)
- Price discovery phase still so will be super volatile.
Entry : Break of 69.2
Stop loss: 62.2
$FUTU - Potential long term leader just entered a buy point Chinese company operating in the financial services with great fundamentals.
