I am purchasing 100 shares and the current price is 19.03
| Current Market Price | 19.03 |
| Target Gain 20% | 22.836 |
| Close Position 8% | 17.5076 |
I think that this will be higher than 20% on the up side. Cut losses at 8% and looking at the charts it should find support around that level.
Remember to do your own due diligence.
Looking at these numbers I want to own this stock outright, but will be considering writing a covered call against this with a bounce in the stock price. Right now this is oversold and the margins are pretty good. These are lower than industry, but my portfolio size limits my choices. These numbers currently are from Scottrade.com
| Gross Margin (TTM) | 24.05% |
| Operating Margin (TTM) | 17.66% |
| Pretax Margin (TTM) | 15.18% |
| Net Profit Margin (TTM) | 15.55% |
P/E excluding extraordinary items (TTM) 10.5 – This is low compared to industry and S&P
P/E Normalized (MRFY) — No earnings
P/Sales (TTM) 1.4 Very Low. You’re buying the company 140% of revenue and anything under 2 is considered cheap.
They have cash on hand:
Current Ratio (MRQ) 2.6
Quick Ratio (MRQ) 2.1
They are heavily leveraged 65% of company is debt, but this could be a good thing right now if they took on the debt to expand capasity
LT Debt/Equity (MRQ) 0.5
Total Debt/Equity (MRQ) 0.6
Return on Equity (TTM) 37.00% =Net Income/Sales 37 cents hits the bottom line for every dollar of sales
Sales (5Yr) 13.53%
EPS (TTM over TTM) 305.25%
Tangible BV per share (MRQ) 10.28 This should be bottom line in pricing
Let’s look how this is currently trading. The charts are from bigcharts.com
5 yr chart
1 year chart with 20 EMA, because I’m considering options for this and that’s approximately 1 month
I am looking for support at the 20 EMA. Looking at a 6 month chart, this is still in positive territory with the MACD and oversold with Stochastic
NASDAQ Analyst Rating is a strong buy
2017-05-14
I didn’t sell during this earnings period and closed out my position. These values include commissions with a small account.
I bought at 19.32
I sold at 21.89
That was $257 profit in capital gain
I sold one call and received 42.30
I sold another call and received 67.30
That’s $109.60 in yield
Total profit $367 in 3 months on 1932 = 18%