Okay y’all this is my first time doing one of these, so please be patient.
People have asked me about this trade for a while now, so here are my thoughts.
I give this a buy rating for the earnings call.
Here is why.
The daily, weekly, and monthly charts are showing undervalued with positive upside as indicated by the Bollinger bands.
The MACD is indicating a buy crossover at the end of a long red period.
Implied volatility seems to say there will be a +-13.5% move.
Previous earnings look good, not too worried about anything in the news.
Spy is red today and is generally pulling other stocks, down, but GTLB is pushing back.
My expectation is that we buy now, hold through earnings because this is the perfect setup for that discount pricing.
SPY recovers in a day or two and trends up giving the market a boost. When earnings come, it will catapult. The charts say it is going up, spy will boost that. If it goes down, spy will slow it a little, but I would expect a 3m period of holding to get out at the current price if it drops by 13%.
So, there we have it, a perfect setup, with market boosting, and earnings catalyst ready to push up.
My anticipated price target is $71.
Thoughts?