NEW BULLISH Plays
Shutterfly, Inc. - SFLY - close: 43.12 change: +1.34
Stop Loss: 40.95
Current Gain/Loss: unopened
Entry on February -- at $--.--
Listed on February 27, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: Yes, see below
Why We Like It:
SFLY could see another short squeeze. The stock exploded higher in early February on a much better than expected earnings report. The company beat estimates by 39 cents (about 40% higher than expected). Now that SFLY has spent the last three weeks digesting those gains shares don't look so overbought any more. Today's move (+3.2%) is a bullish breakout from the recent trading range. Should this strength continue SFLY could see some short covering. The most recent data listed short interest at nearly 40% of the small 28.6 million share float.
I am suggesting a trigger to open bullish positions at $43.25. If triggered our target is $48.50. I would keep our position size small as SFLY can be a volatile stock.
Trigger @ 43.25 *Small Positions*
Suggested Position: buy SFLY stock @ (trigger)