- New Trades -
V.F. Corp. - VFC - close: 65.86
VFC is a watch list candidate that met our entry point requirements with Friday's rally. The stock outperformed the broader market with a surge of +1.85% and a close at $65.86. Our plan was to wait for VFC to close above $65.75 and then buy calls the next morning. Our entry point is Monday morning.
Earlier Comments: September 7, 2014:
Wall Street remains concerned about the consumer, especially on apparel spending. Yet shares of VFC have managed to weather these concerns pretty well. The company offers a broad range of apparel, footwear, accessories, and more.
According to a company press release VFC describes itself as, "a global leader in the design, manufacture, marketing and distribution of branded lifestyle apparel, footwear and accessories. The company's highly diversified portfolio of 30 powerful brands spans numerous geographies, product categories, consumer demographics and sales channels, giving VF a unique industry position and the ability to create sustainable, long-term growth for customers and shareholders. The company's largest brands are The North Face, Vans, Timberland, Wrangler, Lee and Nautica." Sales are nearing $11.8 billion a year.
Management decided to split its stock 4-for-1 back in December 2013. Stocks splits are normally seen as a sign of confidence by the management. VFC missed earnings estimates and guided lower back in February 2014. Since then the earnings picture has improved. Investors have been buying the dips and the point & figure chart is bullish with a $77 target.
Technically the stock looks like a buy right now with Friday's bounce from its 10-dma and the close near all-time highs. I'd like to see a little bit more confirmation. Wait for a close above $65.75 and then by calls. We'll start with a stop at $60.75, just under the simple 200-dma.
- Suggested Positions -
SEP 15, 2014 - entry price on VFC @ ??.??, option @ -.--
symbol: VFC160115C70 2016 JAN $70 call - current bid/ask $4.20/4.50
09/12/14 VFC met our entry requirement with a close above $65.75
Option Format: symbol-year-month-day-call-strike
Chart of VFC:
Current Target: VFC 85-90.00 zone
Current Stop loss: 60.75
Play Entered on: 09/15/14
Originally listed on the Watch List: 09/07/14