PAY trade ideas
Verifone Report Today // Perfect 2618 running...NYSE:PAY
"Verifone is the maker of electronic payment terminals, including Europay, Mastercard, Visa (EMV) systems which accept credit cards with chips. As of October 1, merchants using non-EMV compliant terminals began assuming liability for fraudulent transactions, a liability previously held by the credit card companies. The shift in this liability should be profitable for Verifone as merchants scramble to update their payment terminals (at last read in 2014, the percentage of EMV enabled devices only reached 27%). Gas stations get a two year extension, however. None of the more than 1 million gas stations in the US have EMV capable devices at this point, due to the high cost of updating self-service gas pumps. Also worth watching on Monday is progress in Near Field Communication (NFC) technology, which allows electronic devices to exchange radio communication with each other when brought into close proximity -- technology used with such apps as Apple Pay, Android Pay and Google Wallet."
Safe trades;
$PAY going down to their 2/16 low of $20.50 low in AHAfter a bad ER, announced layoffs, and possible restructuring, $PAY fell to their 2/2016 low of $20.50 in AH. It will be interesting to watch the price action at the open, but my bet is to start a short position and watch it ride the rest of the day.
PAY: VeriFone Systems Inc (Software & IT Services)PAY: VeriFone Systems Inc is in the technology sector, and within that sector it is in the Software & IT Services industry, which is growing faster that the technology sector itself. I have oil and healthcare stocks, now I wanted something in tech or software, and I found this stock.
I opened a position on PAY based on one of my primary swing trading strategies. My target is 38.10, about +2.40 away if it can break above 36.40. It is currently consolidating on both a monthly and weekly basis, making a weekly ascending triangular pattern and another daily ascending triangular pattern within that weekly pattern.
Reverse Head & Sholders in Verifone $PAYA clear reverse head and shoulders formation in Verifone after a solid earnings beat yesterday. I'm keeping a tight stop loss at 32.66 and looking for the stock to reach the 'neckline' which gives it about 13% upside. The risk/reward ratio is very appealing at approx. 5. There's also a bullish break above the 30 level for the stochastic oscillator. This indicates a pick up in momentum.
