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openhandedgrouse (< 20)

Favorite stock for 2015 and beyond.

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January 09, 2015 – Comments (3) | RELATED TICKERS: SALE , COUP.DL

SALE (retail me not) came public in 2013. Shortly after it's stock price ascended above $48 a share. After a hiccup with Google's newest search algorithm causing slower growth then expected it is now about $14.  Currently Sale has a short interest of 18.9 percent!  SALE has a market cap of 766 million, has 215 million of cash and 24 percent of shares are held by insiders. 

P/sales is 2.93  

P/ book is 1.55 

p/cash flow 16.2

CEO approval is 93 percent. 

Thesis is that digital coupons are less expensive and can be more specific I.e. Personalized or geographic than flyers and more convenient for consumers. Considering the high insider ownership and short position Sale is wound tight and go much higher with one or more positive catalysts.

Coup is a competitor of sale and is 2x or more expensive than Sale. Also the CEO of coup has an approval rating of 58 percent compared to 93 percent. They are also cash flow negative. 

Coup market cap 1.57 billion

P/sale 6.47

P/book 5.23

 

 

3 Comments – Post Your Own

#1) On January 12, 2015 at 3:59 PM, openhandedgrouse (< 20) wrote:

I own 4 July $10 calls for a little less then $5 each. I think stock will probably go up to $18 before their 4th quarter report. I can then sell half position or sell four calls against the four calls I own turning it into a call spread. 

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#2) On February 02, 2015 at 6:01 PM, openhandedgrouse (< 20) wrote:

Insiders own 24 percent. Institutional investors are 70 percent. 20 percent short interest equals time for huge squeeze. 

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#3) On March 12, 2015 at 1:27 AM, openhandedgrouse (< 20) wrote:

Sold position for nice gain. Will buy again at a lower price considering generous buy back. 

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