This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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April 17, 2019
Michael Kramer and the clients of Mott Capital own Disney, Netflix
US Markets
- S&P 500 Futures +5
- 10-year Treasury 2.61%
- VIX 12.04
- Dollar Index 96.94
- Oil $64.42
International Markets
- China Shanghai +0.29%
- Hong Kong HSI -0.02%
- Japan Nikkei +0.25%
- South Korea KOSPI -0.12%
- UK FTSE -0.10%
- German DAX +0.29%
Key Events
- China GDP came in ahead of expectations at 6.4%
- Morgan Stanley is Rising after reporting better than expected quarterly results
US Trading
S&P 500 (SPY)
The S&P 500 is pointing to a higher open again; perhaps today can be the day we finally breach 2,915 on the index. My gut says today will be the day.
Netflix (NFLX)
At the moment Netflix erased all of its post-market losses and is now trading higher in the pre-market this morning by about $2. The report last night was powerful, despite what any talking head on TV says. The company just reported its most robust subscriber growth ever, and anyone who follows the company knows the second quarter tends to be the companies weakest. Remember last year in the second quarter the company issued strong guidance and missed. I think Reed Hastings knows enough not to make the same mistake twice. It seems like when they want to lower expectations, Netflix uses a default 5 million subscriber additions. They did the same thing in the third quarter last year only to crush that guidance.
I have owned this stock since August 2016, and I know a thing or two about how this management and company operate.
$380 is on the table. Watch for it.
Qualcomm (QCOM)
Qualcomm continues to trade higher this morning rising another $6.50 bucks to $77. I went back and looked, and the options I had written about most recently on April 10 were the July $65 calls and trading around $1 with 15,000 open contracts, and worth about $1 million. Last night those options closed at roughly $6, and with today’s move up I bet they will be worth over $10, or $10 million. Nice trade, to someone out there! Btw. That wasn’t the only one, there where multiple bullish bets made like that since February, look at the open interest at the $62.5 calls for October with over 30,000 open contracts.
$81 may be the next stop.
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Intel (INTC)
Intel is up colossal today too, about $2 bucks and could be on its way to $63, a price not seen in almost 2 decades.
Morgan Stanley (MS)
Morgan Stanley is breaking higher today too, and now may be on its way to around $51.
SNAP (SNAP)
SNAP may be gearing up for its next move higher towards $13.20
Disney (DIS)
Yesterday in my premium area I put a video showing you exactly how I calculated Disney rising to around $175. Why Disney May Rise To $175
Have fun today!
-Mike
Mott Capital Management, LLC 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. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.