NEW BULLISH Plays
Veeva Systems - VEEV - close: 31.52 change: +1.27
Stop Loss: 29.70
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on December -- at $---.--
Listed on December 04, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 991 thousand
New Positions: Yes, see below
Why We Like It:
Wall Street loves a growth stock and this company is growing quickly.
VEEV is in the technology sector. They're part of the healthcare information technology industry. A company press release describes Veeva Systems Inc. as "a leader in cloud-based software for the global life sciences industry. Committed to innovation, product excellence, and customer success, Veeva has more than 200 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. Veeva is headquartered in the San Francisco Bay Area, with offices in Europe, Asia, and Latin America."
The company held its IPO in 2013 and shares priced at $20.00 and traded up to $49.00 four days later. The next eight months were painful as VEEV's stock drifted down to the $17.50 area. Fortunately shares have reversed thanks in large part to VEEV's earnings.
The company has beaten Wall Street's estimates on both the top and bottom line and guided higher the last three quarters in a row. Their most recent report was November 25th. Analysts were expecting a profit of $0.08 per share on revenues of $78.97 million. VEEV reported a profit of $0.09 while revenues soared +52.4% from a year ago to $83.8 million. They said their subscription service revenues in the third quarter rose +58% from a year ago. Their third quarter operating income doubled from $10.0 million to $19.9 million.
VEEV's management raised their Q4 guidance on both the top and bottom line. The stock soared the next day (Nov. 26th) and hit new eight month highs. Shares have since corrected but investors are buying the dip near support in the $30 area. Further gains could spark some serious short covering. Depending on the source, current short interest is between 22% and 55% of the relatively small 37.1 million share float.
This stock is volatile so I am suggesting investors limit their position size to reduce risk. Tonight we are suggesting a trigger to open bullish positions at $32.05.
Trigger @ $32.05
- Suggested Positions -
Buy VEEV stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the JAN $32 CALL (VEEV150117c32) current ask $1.60
Option Format: symbol-year-month-day-call-strike