NEW BULLISH Plays
Natural Health Trends Corp. - NHTC - close: 53.72 change: +2.26
Stop Loss: 49.90
Target(s): To Be Determined
Current Gain/Loss: Unopened
Entry on November -- at $---.--
Listed on November 16, 2015
Time Frame: 6 to 8 weeks
Average Daily Volume = 379 thousand
New Positions: Yes, see below
If you're looking for relative strength then NHTC could be your stock. It's been a rocky ride so far in 2015 with big swings both up and down. Right now NHTC is on an upswing. Shares have rallied +168% from its August 2015 low near $20.00. The stock is up +369% year to date.
NHTC is in the consumer goods sector. According to the company,
"Natural Health Trends Corp. (NHTC) is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, North America, and Europe. The Company markets premium quality personal care products under the NHT Global brand."
The company's earnings and revenue growth has been significant. They reported their Q2 results on July 28th. Earnings nearly doubled from $0.49 a year ago to $0.98. Revenues soared almost +104% to $69.7 million. At the time management raised their dividend +33% to $0.04 a share and announced a $15 million stock buyback program.
In the middle of October NHTC pre-announced strong Q3 revenues. They reported their Q3 results on October 27th. Earnings soared from $0.42 a year ago $1.18 a share. Revenues hit a record $80.8 million, up +154% from a year ago. Their number of active members increased +24% to 94,700 from the prior quarter. Management then raised their dividend to $0.05.
NHTC hit new multi-year highs at $55.45 in early November. Since then shares have spent the last two weeks consolidating sideways in the $50-54 zone. The stock weathered last week's market decline pretty well. If shares breakout higher NHTC could see a short squeeze. The most recent data listed short interest at 19% of its very small 7.3 million share float.
Tonight we are suggesting a trigger to launch bullish positions at $54.30. I am suggesting small positions. Shares can be volatile. We should consider this a higher-risk, more aggressive trade.
Trigger @ $54.30 *small positions to limit risk*
- Suggested Positions -
Buy NHTC stock @ $54.30
- (or for more adventurous traders, try this option) -
Buy the JAN $60 CALL (NHTC160115C60) current ask $4.30
option price is a current quote and not a suggested entry price.
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.
Option Format: symbol-year-month-day-call-strike