Schaeffer's Trading Floor Blog

Highs & Lows: Groupon, Michael Kors, Expedia, and Lowe's

GRPN drifted lower on the charts, while KORS, EXPE, and LOW shot higher

by 11/2/2012 4:35 PM
Stocks quoted in this article:

A positive jobs number wasn't positive enough for Wall Street, as many speculators stayed on the sidelines, or opted to sell ahead of the weekend and Tuesday's election. By the time the closing bell rang out, stocks were solidly parked in the red, but mixed on the week. Against this backdrop, the total number of stocks touching new annual highs outpaced those at new bottoms. There were 113 new peaks and 25 lows on the NYSE today, while the Nasdaq tallied 57 new highs and 29 lows. Among the names charting notable moves were Groupon Inc (NASDAQ:GRPN - 3.83), Michael Kors Holdings Ltd (NYSE:KORS - 56.20), Expedia Inc (NASDAQ:EXPE - 59.07), and Lowe's Companies, Inc. (NYSE:LOW - 33.15).

  • What an awful time GRPN has been having on the charts, burning off more than 81% since January, and plummeting roughly 85% since going public on Nov. 4, 2011. To make matters even worse, the shares buckled to an all-time low of $3.68 earlier today. Despite this weakness, there is still plenty room in the bears' camp for the remaining bullish analyst holdouts. The average 12-month price target of $7.29 represents a 98.1% premium to GRPN's new low. What's more, the stock still tallies five "strong buys," 15 middling "holds," and two "strong sell" suggestions.

  • Another Wall Street rookie reaching a technical milestone today is KORS. Right out of the gate this morning, the fashion design label leapt to the $58.62 mark -- its best price since its mid-December 2011 IPO of $24.20, which marks an impressive 142% rise. While the brokerage group preserves an upbeat stance on KORS -- all nine analysts have doled out "buy" or better ratings -- the shorts appear to loosening their hold. Over the most recent reporting period, short interest dropped 6.8% and now makes up just 3.5% of the equity's float.

  • Speaking of technical standouts, EXPE augmented its substantial 103.5% year-to-date rally today, launching to a record best of $61.38. But this exceptional upswing has gone unnoticed by some analysts covering the online travel company. There are eight "buy" or better endorsements, compared to nine lukewarm "holds," and a single "strong sell." Meanwhile, the consensus 12-month price target sits at $63.63, which is a slight premium to EXPE's record-breaking acme.

  • Wrapping things up, we visit home improvements retailer LOW, which has busy helping many clean up in the wake of super storm Sandy. With all this business, the shares have seen an uptick on the charts, running to a more than five-year peak of $33.63, and adding to its roughly 30% 2012 return. There could be more gains ahead, should the negatively skewed options arena give in to this positive price action. During the past 20 days, speculators on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 1.05 puts for every call on LOW. Plus, the Schaeffer's put/call open interest ratio (SOIR) of 1.15 sits in the 93rd percentile, suggesting that near-term options players have been more put-heavy just 7% of the time during the last 12 months.

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