NEW BULLISH Plays
Globant S.A. - GLOB - close: 34.20 change: +1.00
Stop Loss: 31.85
Target(s): To Be Determined
Current Gain/Loss: Unopened
Entry on July -- at $---.--
Listed on July 23, 2015
Time Frame: Exit PRIOR to earnings on August 13th
Average Daily Volume = 251 thousand
New Positions: Yes, see below
One year ago GLOB priced its IPO at $10.00 per share. It opened at $12.95 on July 18th, 2014. Today the stock is up +164% from its first trade. Investors have been buying the dips and now GLOB is poised for another bullish breakout.
GLOB is in the technology sector. According to the company,
"Globant (GLOB) is a new-breed technology services provider focused on delivering innovative software solutions by leveraging emerging technologies and trends. Globant combines the engineering and technical rigor of IT services providers with the creative approach and culture of digital agencies. Customers select Globant as the place where engineering, design and innovation meet scale. In only 12 years, Globant has grown into a company with more than 4,000 professionals working for customers like Google, JWT, EA and Coca-Cola, among others, has been recognized as one of the Top 10 Most Innovative Companies in South America by FastCompany, was included in the 2010 Cool Vendor in Business Process Services Report by Gartner, and has been featured in case studies at Harvard, MIT and Stanford."
As a relatively new public company GLOB does not have a big earnings history but what we do see is positive. Their first report as a public company was November 2014 where GLOB beat the earnings estimates while revenues were in-line. In February 2015 they reported their Q4 results that beat estimates. Revenues were up +19% to $55.1 million, which was also above expectations. Management guided in-line.
Their most recent report was May 14th. GLOB beat estimates on both the top and bottom line. Management guided 2015 earnings in-line with analysts' estimates but they raised their 2015 revenue estimate to $244-250 million, which was above expectations.
Shares of GLOB are currently testing resistance at the $35.00 level. We want to launch positions on a breakout. I'm suggesting a trigger at $35.15. The $32.00 level has been recent support so we'll start with a stop loss at $31.85. I am suggesting small positions. GLOB only has a float of 19 million shares and trades about 250,000 shares a day, which is not very much.
Trigger @ $35.15 *small positions to limit risk*
- Suggested Positions -
Buy GLOB stock @ $35.15
Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.