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Facebook, Micron, Roku, Celgene, and Exxon In Focus- The Week Ahead
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Earnings will take center stage this week, as we noted in our preview piece earlier. But it is not the only thing going on for the balance of the week. We still need to watch plenty other parts of the market. Facebook, Micron, Roku, Celgene, and Exxon are all in focus this week, at with all at critical junctions.
Facebook shares are still struggling to regain the lost ground from the news feed “revamp.” But the stock has acted exceptionally well and appears well positioned heading into results. The stock has held support extremely well and seems ready to move higher and fill the gap. The chart looks very strong, and even the relative strength reading tell us the shares are far from overbought.
I’m still looking for shares to continue to rise and potentially break towards to $200.
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Micron
Micron shares continue to struggleย to regain their luster since the big sell-off at the end of November, but it seems that a slight uptrend is forming in the chart. The good news is that volume has been slowly falling as well, which could suggest selling pressure is starting to abate finally.
The stock is far from out of the woods, but the picture may begin to turn more positive.
Short interest had been steadily climbing for the stock but appearsย to have turned lower, the final week of December. Also a positive sign as well.
MU Short Interest data by YCharts
Roku
Roku shares continue to trend lower, and there is no reason for that trend to change either. Shares are still severelyย overvalued at current levels, and with a one-year forward price to sales ratio of nearly 4.5. Roku is not the second coming of Netflix; there is no other way to say it. Netflix is a content platform in which subscriber pay Netflix to access that content, Roku makes zero from its “subscribers” other than its one-time purchase and ads. Roku makes zero dollars from Netflix or YouTube the two most watch apps on the platform.
ROKU PS Ratio (Forward 1y) data by YCharts
I just don’t see it; I just don’t. This is coming from the creator of the “On Demand Generation” and who has followed and correctlyย calling the rise of this trend over two years, whom also has uses Roku.
Mott Capital Says Netflix (NFLX) At Forefront of Paradigm Shift, Talks Disney, Hain, NXPI Deal, More
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Celgene
Celgene shares have continued to struggle, but again the stock holds $102 very well, and with the company set to report this coming week, perhaps some positive news will follow. There have been talks of the company looking to buy Juno; this comes after the Celgene acquired Impact earlier this year.
Celgene seem very serious about diversifying the pipeline in 2018, and showing investors they are serious about growing sales, and moving beyondย Revelimid, and should they prove fruitful, then the stocks earnings multiple of about ten times one-year forward estimates of 10 may prove very cheap.
CELG PE Ratio (Forward 1y) data by YCharts
Exxon
Finally, Exxon Mobil, nears a massive breakout level, one which could send share about back to $93 very quickly, and on their way higher towards perhaps to $103. A rise above $89 signals that breakout.
As long as Oil prices continue to rise a breakout becomes more likely.
Good luck!
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Michael Kramer and the clients of Mott Capital own shares of NFLX, CELG
Mott Capital Management, LLCย is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.ย Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
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Tags: #sp500 #facebook #roku #netflix #exxon #celgene