We are having our annual equity plan in January here at OptionsANIMAL. When I take a look at the tracking of the equities that were named by OA staff this time last year, I found that they were ranked according to how bullishly they performed during the 2014 year. Other statistics were given, too: Ticker Symbols, Current Fair Market Value, Daily Change (Price), Daily % Change, 52 Week Range, Dollar Change From Selection, % Change from Selection, Beta, Dividends, Ex-dividend Dates, Date of EPS, Sector, Industry, Related Companies. When I take note of the three that I selected, I see that Facebook was the only one that ranked well during the year in terms of change in Fair-Market-Value.
I’ve been thinking about my choices for 2015. I came up with three that are fairly new to the US Market: GPRO (GoPro Inc June 26, 2014), TSLA (Tesla Motors, Inc, June 29, 2010) and VA (Virgin America, Inc, November 14, 2014).
This past year was successful for initial public offerings (IPOs). The feel for the coming year is that they will continue to rise in value. I have traded TSLA many times but have not traded GPRO or VA yet. Why am I considering each of these three?
Tesla Motors, Inc
When it first made its debut in 2010, I was discouraged by the fundamental data that I found. The earnings had been red for several quarters and years. The revenue was negative. There was no return on equity (ROE), plus a large amount of debt. The price chart demonstrated a few years of range-bound movement between $25.00 and $40.00. In April of 2013, the stock broke out of a 44-week consolidation and exhibited a High Tight Flag pattern. I was surprised to observe this and felt that it was demonstrating more strength than I had expected. Time to trade the equity!
GoPro, Inc
I heard an interview on CNBC with Nicholas Woodman on the day it was first offered, June 26, 2014. The story of the creation of this company was compelling. I resisted the temptation to buy into the stock on day one! The agreed-upon offer price was $24.00, but the low of the day was $28.65. All I could do was remember the investors response to Facebook when it first hit the market in May 2012. So, of course, I avoided GPRO. This year, GoPro, Inc has traded as high as $98.47 and has pulled back to a recent low of $53.64.
Virgin America, Inc
This equity is the newest of the three chosen. I have learned less about this company than I did the other two. Before I place a trade on this one, I’ll need to apply the full Six-Step-Methodology that I learned at OptionsANIMAL! Technically, it is shown as having constructed an IPO base with a buy point of $39.74. It experienced a significant move up (break-out) on December 24 where the price increased more than 14% on that day. On the next trading day, December 26, the stock bolted higher than the 5% limit from the pivot point and has not pulled back within that range since then.
When I examine the sectors, I find that each is in a different one: TSLA – Auto; GPRO – Consumer; VA – Transport. TSLA has starred as one of the top thirty stocks by IBD this year. GPRO is being led by a fully committed founder and CEO without competition currently. VA is committed to providing customers with delightful services at a low cost, and it is liable to benefit from the decline in the price of gasoline.
I am looking forward to trading these equities in 2015!
Emilu Bailes
OptionsANIMAL Instructor
