Earnings Breakout SwingMule is a recent earnings winner. after its big gap up day it has been resting in a tight range. even with the recent market fluctuations this has not had any movement to the downside. Think this can be a swing trade with a stop under its recent range for a multi day hold
Mule
Speculative Long In $MULEI think MULE is coming into an area where I feel comfortable taking a shot on the long side. Market mechanics for the past couple of years have taken on what I like to call a "trip it and rip it" pattern. Stops get run and then at maximum frustration, the stock rips higher. I think we might see that in MULE after a bit more downside. See the gap up with high volume and where I drew the rectangle. I'll be taking some calls here into January.
Long on MULEGreat find on the day of the evening stars. After the Tech selloff it was a matter of looking at what candle was going to create the massive "Hammer". Eventually if you combined the three candles of the Morning Star Pattern, you get a big "Hammer". This one closed above the mid point of the sell of candle (~$24.76) and above the mid point of the IPO Opening candle (~$24.50), that gives a good signal in the long run. Currently the bears are still in control of the trend, and it is hard to tell without the Aroon Oscillator if we are in fact in an upside trend (not too many days in the market for $MULE), However, the short ratio is 1.64. The rule of the Japanese traders is to wait for a confirmation of the pattern, however Mulesoft business model is too good to let it run without us. Usually the Morning star pattern is confirmed if it opens up above today's close price of ~$24.97. With all things being equal, we are long on MULE.
MULESOFT IPOMuleSoft $MULE
IPO price $12-14 (possibly $15-16 due to high demand).
Revenue in 2016: $188M
Debt: $0
IPO size: 13 000 000 shares.
Total shares: 127 900 000 shares.
Potential valuation: $1.8B
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Company was created in 2006 and does the iPaaS for corporate companies.
Revenue last 3 years: 58M, 110M, 188M
Costs: 88M, 142M, 187M
which is mostly marketing & Research&Development, to achieve new clients.
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Some can say that its a garbage. But because there is only 9% of shares sold in this IPO,
and a lot of bulls in the market
I think that this will be successful.
Would like to see at least 40% growth in first day.
