In addition to tonight's new candidate, consider these stocks as possible trading ideas or watch list candidates:
LTM, Z, MDCO, SBUX, RUSHA
NEW BULLISH Plays
Pandora Media, Inc. - P - close: 13.66 change: -0.25
Stop Loss: 13.25
Target(s): 15.90 or 17.75
Current Gain/Loss: unopened
Time Frame: 6 to 12 weeks
New Positions: Yes, see below
Why We Like It:
Pandora is the extremely popular Internet radio service that's also available on your smartphone. The company's management received a lot of flack for not offering a lot of details prior to their IPO back in June. Now months later the CEO is still not providing a lot of guidance. Yet that hasn't stopped the stock from rebounding this past month. There was a big lock up expiration back in early December, which depressed prices late last year.
Now shares of P are poised to breakout past resistance near $14.00 and its exponential 200-dma. I am suggesting a trigger to open small bullish positions at $14.25. We'll use a stop loss at $13.25. I am listing two different targets based on your time frame and risk tolerance ($15.90 or $17.75).
FYI: The Point & Figure chart for P is bullish with a long-term $23.00 target.
Trigger @ $14.25
Suggested Position: buy P stock @ $14.25
- or -
buy the Feb $15 call (P1218B15)
Entry on January xx at $ xx.xx
Earnings Date 03/01/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on January 30, 2011