BOX belongs to a very select group of small cap stocks that actually moved higher over the last three weeks. I looked at charts for more than 300 small price stocks over the weekend and just based on the individual charts, there is a lot of underlying bearishness in the small cap space. Out of those 300 charts, there were only about 16 that would have been playable if they did not have earnings over the next two weeks. Two thirds of those were bearish charts. Only 5 had positive charts. That is not a good sign for next week. I was trying to find something to use for a long play and the pickings were very slim.
NEW BULLISH Plays
BOX - Box Inc - Company Profile
Box, Inc. provides cloud-based mobile optimized enterprise content collaboration platform that enables organizations of various sizes to manage their enterprise content from anywhere. The company's platform enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features. Box, Inc. offers its solution in 22 languages. It serves healthcare and life sciences, financial services, legal services, media and entertainment, retail, education, energy, and government industries. Company description from FinViz.com.
Box is rapidly growing its customer for document management for companies with a global workforce. They are competing with other companies for cloud collaboration and access. More than 69,000 companies worldwide now use Box. They have broken into the media sector and now many production companies use Box for storing and distributing their production content. This has given Box a new niche in the market. Box has partnered with Salesforce.com, IBM and Microsoft in the cloud space. Their goal is to partner and grow with them rather than compete with those giants.
The company reported a smaller than expected loss for Q3 and expect to post an even narrower loss for Q4. Their guidance for Q4 is a loss of 13 cents on revenue of $109 million. That is better than the 26 cents loss in Q4-2015.
Earnings March 1st.
Shares broke out to a new 52-week high on January 12th before pulling back slightly with the market. They closed 5 cents below a new 52-week high on Friday.
With a BOX trade at $17.10
Buy BOX shares, initial stop loss $16.35.
NEW BEARISH Plays
No New Bearish Plays