New Setup: MEISlim pickings coming out of last week's on quality momentum stocks -- however going thru my stock scanner I managed to find a setup.
MEI : I have a swing trade setup signal. I'm looking to enter long if the stock can manage to CLOSE above the last candle high(BUY). If triggered, I will then place a stop-loss below (SL) and a price target above it(TP-50%,move SL to breakeven), then using the close below the 10SMA as my trailing stop loss. **Note: The above setups will remain valid until the stock CLOSES BELOW my set stop-loss level(SL).
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ME5A trade ideas
MEI Methode Electronics Options Ahead of EarningsAnalyzing the options chain and the chart patterns of MEI Methode Electronics prior to the earnings report this week,
I would consider purchasing the 30usd strike price Puts with
an expiration date of 2024-1-19,
for a premium of approximately $1.82.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
MEI: Ascending triangle repeating itselfAscending triangle on descending volume
Price stopped at 37.25$ resistance
Came back down to 30.59$ support.
May bounce on support and point North again.
PPS above 50MA
200MA pointing up
RSI at 50
ATR in upward motion
Very similar setup as 2019
Could see 39,83$ if it bounces back from support.
Methode Electronics Bullish pre Earnings Entry level $ 37.89 = Target price $41.26 = Stop loss $ 36.58
Very bullish setup as earnings approach.
Indicators are in a bullish mode having reversed.
Above $39 is a very congested price zone so advances may be slow.
P/E ratio 14.72 very reasonable.
Company profile
Methode Electronics, Inc. engages in the manufacture of component and subsystem devices. It operates through the following segments: Automotive, Interface, Industrial, and Medical. The Automotive segment supplies electronic and electromechanical devices, and related products to automobile original equipment manufacturers. The Interface segment provides a variety of copper and fiber-optic interface and interface solutions for the aerospace, appliance, commercial food service, construction, consumer, material handling, medical, military, mining, point-of-sale, and telecommunications markets. The Industrial segment manufactures external lighting solutions, industrial safety radio remote controls, braided flexible cables, current-carrying laminated busbars, and devices. The Medical segment refers to the medical device business. The company was founded by William Joseph McGinley in 1946 and is headquartered in Chicago, IL.
BREAKOUT IMMINENT IN METHODE ELECTRONICS =====PRICE TARGET $37.50====
ENTRY LEVEL ON BREAK OF RESISTANCE @ $32.20
EARNINGS HIGHLIGHTS
Shares of Methode Electronics Inc. (NYSE:MEI) were up more than 13% on Thursday after the company released its first-quarter 2020 results before the opening bell. The company beat analyst expectations for both earnings per share and revenue.
Methode Electronics posted a 20.9% increase in net sales to $270.2 million. GAAP net income came in at $28.3 million, or 75 cents per share, beating analyst expectations by 7 cents. Sales from Grakon, which it acquired in 2018, came in at $54.3 million. They had a huge impact on the company's GAAP net income.
The gross margin for the year ticked up to 28.1% from 26.9% in the prior-year quarter. Management attributed this change primarily to Grakon's sales. But selling and administrative expenses also edged lower to 12%, down from 13.2% in the year-ago quarter.
SOURCE GURUFOCUS.COM