Sunday, January 24, 2016

Enigma: definition : a puzzling or inexplicable occurrence or situation. Such is the case with one popular name but very unpopular stock. Twitter (Symbol TWTR, $17.84)

Dow Jones Industrial Average 16,094 (UP) Week ending 01-22-2016

A picture tells a thousand words. Our Nor'Easter here this weekend mirrors the turbulence of our current US stock markets this past week.  Hard to tell where the ocean ends and the shoreline begins, kind of like our stock averages. 

But sometimes, like Doc in John Steinbeck's story Cannery Row, you can go into The Great Tide pool, (of stocks), and in the some small eddy you can find some really amazing things. 

Such is the case of one enigmatic stock called Twitter Inc., which finds itself tossed and turned with the wild tide of these markets. 
 Twitter, (Symbol TWTR, $17.84) is simply the most fantastic and fastest news delivery system in the world. Don't try to picture it as something else or compare it to other things that it is not. 

Analyst are projecting $0.36 cents earnings for this year and projecting next year earnings at $0.56 per share. For the next 5 years earnings are projected to increase by 65% per year. Twitter has a Quick Ratio of 10 to 1. Analysts have 18 Buy recommendations and 23 Hold recommendations. Yet, Insiders over the last three months have been selling shares by a 2 to 1 ration , rather than buying them.?? 

The company has target prices of 40, 33,29,24, and 21 by various firms. Ex-Microsoft CEO bought 4% of the shares and says "Good Job" and is glad he has bought the shares. The company trades at 2.8 times book value.

There have been two large option trades with big buys placed on the March $36 Call Options.

Revenues for the company have been growing from 2013,$668 Million to 2014 at $1.4 Billion to 2015 at $2.0 Billion. Quarter over quarter sales are up 57.5 percent.

I would call this a Speculative Buy with a good chance to succeed just because there has been so much negative hate on this name.

Sometimes you just take a little bit of a longer stance and have a little faith that it will succeed. 

There are many big companies out there that could be interested in acquiring Twitter because of its ability to deliver news so quickly. Just last week there was a rumor that News Corp. was interested. 

Well, 3:07 EST US, and I need to finish this up because the AFC Championship Game is starting , (Football American style), so we will have to continue this conversation on Twitter. (@Freewilly555 is my handle).

Good investing and have a great week,


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