An easy rider for our a-quant mobile app users!!
From our quantamental ideas/signals back in June.
Short at 44.16 , UBER now at 33.25 for a 24.7% profit.
Close the position on Friday!
Nowadays , almost everybody is talking and probably using fintech solutions, especially in the smart payments sector. Such a name with great potential came up to our quantitative model’s attention, which is based on fundamental factors , SEC filings + analyst reports sentiment analysis, as well as price action based technical factors.
Evo Payments (EVOP) is a US based company with a market cap of 2.6 Billion USD and a very considerable & fast evolving client base in the US & abroad. The filings and analyst & hedge fund reports give a very positive sentiment towards the stock and the funds’s interest has been growing steady and nicely.
It’s a July 2018 IPO, now at 31.53 that popped up in our model’s screen and gives us a probability of >71% to surpass 40 USD the next 6 months.
Taking into account its volatility we would start building a position for the next months. Potentially it may become a multi-bagger holding in our portfolio.
The Mobile App Indices&Commodities Trading Signals(you can verify it at our mobile app easily)
May 2019 – June 2019 – 2 months period
Total trades : 30
Win rate: 83.3% (25/30 win)
Average win: +0.34%
Average loss: -1.082%
Profit per Trade Expected Value: +0.1% per trade
Biggest Loss : -1.42%
Total Performance : 3.09% (Leverage 1:1)
Annualized Performance : 20%
Last week for FX mobile trading signals
Trading period: 25/6 – 28/6
Total trades: 30
Profitable trades: 25
Win rate: 83.33%
Net profit: 138.5 pips (=1.3% performance in a 1:1 leverage strategy per position opened)
An excellent & lovely service , everyone of us uses doesn’t necessarily implies an excellent investment opportunity and UBER may be such a case. UBER one of the recent & most anticipated IPOs has been facing many headwinds and our quantamental model has raised a SHORT flag.
Based on technical & fundamental factors , UBER now at 44.16 has a greater than 75% chance of underperforming the market within 2019. More specifically a price of 37 – 40 USD , a 10-20% fall from recent levels , has a chance of 72% the next 1-5 months. IPOs especially at their first months after their debut are very volatile up to some weeks after their unlock period.
In the recent full of mines environment is very hard to find opportunities , without being ready to sustain the possible short term pain. But in harsh conditions and even worse than this of the last days, there is a real chance to identify some real gems. One of this, is Paylocity Holding Corporation (PCTY) which is a cloud SW firm providing payroll & human resources management services. The stock now at 101.42 got a green flag from our stock selection quantamental model based on fundamentals & technical factors as inputs. It has a 85% chance of outperforming the market in the next 3-6 months, even though it had a run of more than 65% in 2019. We would suggest opening a small position and add gradually to it, if the market stabilizes and our hypothesis starts working.