SIB XX Trade Alert: ACHC, SNA
Actions to Take: Close Acadia Healthcare (ACHC) at the market open on Wednesday, August 1, 2018.
Enter Snap-On (SNAP) with a Buy Limit order @ $169.05 or lower on Wednesday, August 1, 2018. Remember to use Good til Cancelled with this trade.
Acadia Healthcare (ACHC) fell on lowered forward guidance following earnings and that was enough to move the stock below our stop trigger.
CBS opened today at $51.40, to end that trade with an 8.2% loss. If you didn’t exit this morning, GOOD ON YOU! Get of CBS tomorrow, you got a bounce today.
Two tough closes in two days, as both CBS and ACHC will recover in time, but we’re better served saving capital for new potential trades in the days ahead.
Like Snap-On (SNAP), which reached a buy trigger today, allowing us to replace (or add) another position to our XX Portfolio, once we achieve our buy limit price off $169.05. So let’s get that order in play tomorrow – and if you want some good news, Apple topped estimates and traded higher in after-market-hours trading (up 3%).
That recent rout in the Nasdaq could turn tomorrow based on those results, which challenge the fears on the street on tariff and China.
Apple reported: 40% higher EPS (earnings per share) and 17% increase in revenue; and while shipments of iPhones were inline with a year ago numbers, the average sales price was a healthy $724 – which means Apple is moving the higher end phones (8 and X).
Plus, Apple added $9.55B (that’s billion) in “services” revenue (books, music, movies, Apps, ApplePay). John says this was a key point he made last year in recommending Apple (for a short holding period) – the company is literally printing money in services.
So while the “suckers” are buying (and losing) with Facebook and Twitter (which both, as Billy Crystal famously said in City Slickers, “Sell Air”), Apple continues to dominate with real products and services. Great quarter, and a needed boost in the sector.
We’ll aim for a midweek update tomorrow. NOV continues to drive higher and currently leads the portfolio with a +13% gain; AAPL and Mondelez are sitting on 4% gains; majority of positions are in the +/- 2% range, so give them time as most of our positions have been open for 14 days or fewer.
We’ll have another update soon.