Two setups that I love right now.
BJ – BJ’s wholesale club is a Costco competitor with a much smaller marketcap. They crushed last earnings and soared to $47 before getting caught in the market downdraft in early September. It’s currently range-bound between $39 – $42, but only until people remember how much of a beast this business is. Costco continues to report great quarterly and monthly numbers and the stock is crushing it, and that’s good reason to think BJ’s will too. This will easily be $50 by year-end, and could go as high as $80. Earnings is November 19, but I’m getting in early in case it catches an upgrade and starts to soar.
My advice: if it dips into the $39s, buy a little more than you want to hold so you can swing trade back above $41, likely within 48 hours. If you see a 38-handle, mortgage your wife’s boyfriend’s children and buy calls. $43 is a signal that the rocket is starting, so that’s the last stop before moon.
Position: 1/21 $45c + shares
SNE – Sony is another company that handily beat expectations last quarter and traded well after earnings, only to be forgotten and left behind by the market’s rebound from it’s September slump. The chart reminds me of Ebay two weeks ago. Sony reports earnings 10/28, but it has a lot more upside than downside closing out Friday at a 3-month low. I wouldn’t be surprised by some nice price-action before the earnings call. Strong retail sales numbers bode well for Sony. I expect another great quarter.
Position: Nov 20 80c
An update on other recent names I suggested:
CHWY – Broke out to the upside. Congrats call holders! I’m mostly in shares now plus some 1/21 $70c
AAWW – Set new highs, but I’m less confident in its continued march higher than I was
UPS – Underperforming Fedex, but setting higher lows and I think this stock will jump $10 higher sometimes before earnings on 10/28. I’m in Jan 21 $180c and Jun 21 $200c
BYD – Boyd Gaming is going to smash estimates when it reports on 10/26, but this is starting to become priced-in. This is my top performer of the week.
ROKU – Has exceeded my wildest expectations. I’m currently holding shares because I am getting nervous with how quick it went up. If there’s a market crash and it dips 10%, I’d suggest picking up some calls. $300 by mid 2021 would be easy, up from current price of $220.
OSTK – I expect +100% or -50% by year end, depending on whether or not sales continue to benefit from COVID for this small-cap retailer. It’s traded up slightly over the last two weeks, but remains range bound. There’s no shame on FOMO-ing in after earnings on 11/9 if they are good, these shares could triple by the end of next year. I expect some run-up into earnings, but that could be complicated by election jitters.
CWH – It beat earnings in August and traded up to $42. Now down around $32. Traders are betting the COVID bump will be temporary. Hint: it’s not. I’m expecting another monster quarterly report on 11/5, though election jitters could fuck with me. I’m holding many shares and Dec $35c.
ECPG – This debt collector just settled a lawsuit against it by the government for a slap on the wrist, setting it up to crush earnings again on 11/2. It’s trading at just 3x annualized earnings from last quarter. A lot of you guys probably already are familiar with this company from its friendly phone calls. With stimmy money running out, I expect this chart is up and to the right.