Stocks in Play - December 6th 2024

TLDR Stocks in Play: RBRK, LULU, ASAN, WOOF, SaaS

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis.

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1) Rubrik Inc. (RBRK) (Rating: B, Multi-Day, Top Picks December🐶 )

Industry Group: Information Technology Services, Market Cap: $3.3b,  Float: 57m, Short Interest: 7.4%, Days to Cover: 2, Exchange: NYSE

Catalyst: Big EPS Beat (-$0.21 vs est. -$0.40), Strong Revs Beat, Solid ARR Beat, Slight Guide Beat on Revs and EPS. This is a 2024 IPO as also which should attract more interest. Stock is certainly not neglected having run up but will certainly be candidate for a sustained move. Specializing in Ransomware recovery and database security. Strong sector.

2) Asana Inc. (ASAN) (Rating: B-, Multi-Day)

Industry Group: Packaged Software, Market Cap: $2.79b, Float: 79m, Short Interest: 10.53%, Days to Cover: 4.7, Exchange: NYSE

Catalyst: Neglected stock, Still down 90% from 21 Highs. Solid EPS Beat, Revs Beat, Slight EPS & Revs Guide Beat. Meaningful Short interest. Solid candidate today amongst others that reported last night. Announced AI Product Launch.

3) Lululemon Athletica Inc (LULU) (Rating: B-, Multi-Day)

Industry Group: Retail, Market Cap: $44b,  Float: 110m, Short Interest: 6%, Days to Cover: 3.5, Exchange: NASDAQ

Catalyst: Slight Beat on EPS, Slight Beat on Revs, Solid Beat on Gross & Operating Margins, European Revs+30% YoY, US Sales +1% YoY. Guide essentially inline. These results are solid nothing mind blowing. Good growth in Europe but I’ve learned that it’s foolish to overthink a very well known name like this. Sentiment is low with lots of competitors in the space, these results are a blow to the bear case.

Honorable Mention to: IOT - Results were strong however Guide for Q4 was light. This is not like for like however as last year there was an extra week in the Quarter. It may be a decent reversal candidate for an overreaction. Currently -9% Pre Market. GTLB - Strong results, CEO transition is the only negative I see butthis could be enough to temper reaction today. WOOF - Beat on EPS, Revs & Gross Margins, Slight miss on Guide but very high Short Interest at 30% with 75m float.

On a Day like today it’s difficult to differentiate several SaaS results where they're all solid but none stand out very far ahead of the rest. If you’re patient it’s worth monitoring VEEV, DOCU. ULTA in the retail space also had solid results and reaction so far.

Market Awareness

Jobs report this morning at 8:30am EST. may give the market some direction. My bias is toward a pullback in the near future. Yesterday should have been an easy money environment but instead it was choppy and rife with reversals. In this sort of market I want to trade less and have tighter targets, Taking profit quicker and raising stops quicker. There were some good reports last night and plenty of names to work with but I also don’t want to go into the weekend with disappointment. Friday’s can be a big profit give away day especially if the market stays weak. Caution, in control, hitting singles. Patience with entry. Letting market settle after open especially if we see a positive reaction to jobs report.

Top Pick Watchlists:

• Top Picks - November 2024

  • LONG: ALAB, HNST, SNOW, ESTC, RKLB, SMTC, URBN, PLTR, GAP, TSLA, SE, RDDT, DESP

  • SHORT: TGT

• Top Picks - December 2024 

  • LONG: CRDO, MRVL, OKTA, FIVE, RBRK

Sources & Services I Use in my Trading:

• Finviz - Short Interest, Float, Articles, Fundamentals (Free)

• Benzinga Pro - News Source + News Squawk + Earnings Data (Paid)

• Tradingview - Charting & Scanning (Paid)

• Koyfin - Fundamental Data (Paid)

• EarningsWhispers - Earnings Calendar (Free)

• Tradersync - Trade Journal (Paid)

_{PS: There are many ways to trade stocks in play. It does not have to be the one that keeps going straight up and sometimes it doesn’t even have to be day one of the catalyst. Everyone must find a setup, timeframe and method that works for them. This list is supposed to educate on the criteria I use and the methods in which I find Stocks in Play. Yours may differ and that is completely okay.}