As the global community goes cashless, stocks such as First Data (FDC) could run even higher.  That’s because consumers don’t seem to want to use cash anymore.  In fact, global non-cash transactions are expected to grow by 10% to 15% this year, according to Transaction Network Services.  That provides us possible opportunity with FDC.  For a company that already helps companies by securing and processing more than 2,800 transactions a second and about $2.2 trillion a year, that trend could send FDC even higher.

Plus, right now, more than a third of Europeans and Americans would be happy to go without cash and rely solely on electronic forms of payments if they could, notes Reuters.

Already, up to 20% are doing so.

It comes as no surprise that the company is still achieving record revenues.

Fourth quarter 2017 revenue of $34.28 million crushed a year-earlier report of $21.94 million. Net income shot from a loss of $872,000 to $243,000.  Net income per share bounced from a year-earlier loss of two cents to one-cent.  In its most recent quarter, the company posted Q2 consolidated revenue of $3 billion, which is up 3% year over year.  Net income was up 22% to $185 million.  Adjusted net income was up 17% to $378 million.

Growth doesn't appear to be a problem.

Technically, the stock has been consolidating in a tight range between $17.50 and $19 a share since June 2017.  However, I’d like to see a solid break higher with a potential test of $20, near-term.  We believe this could be a solid win with patience.

Consider buying the stock and let it run.

Open Positions:

Disney (DIS) -- $99.25

Disney December 15, 2017 100 calls -- $2.85

We opened this trade just yesterday.  It’s a hold on excitement surrounding the new installment of Star Wars coming soon.

Shopify Inc. (SHOP) -- $96.90

SHOP November 17, 2017 105 calls -- $4.20

SHOP took a hit yesterday, but we are still holding.

After an incredible sell-off on the heels of a Citron Research report, many analysts, including myself, believe it’s nothing more than an overreaction.  Even Piper Jaffray has noted that the business is legitimate and is sticking with its $110 price target.   Credit Suisse believes the bearish argument from Citron is flawed.  And Baird analysts are dismissing the suggestion that SHOP is a marketing scheme.  Hold both trades here.

Cypress Semiconductor (CY) -- $15.37

We recommended this trade just last week.  It’s now up to $15.53 and is just now beginning to gain momentum.

Vale S.A. (VALE) stock – $9.80 entry

We mentioned this opportunity not long ago, as a way to trade the cobalt and manganese shortage story with electric vehicle demand heating up.  Hold.

Sturm Ruger (RGR) stock -- $52.50

American Outdoor Brands (AOBC) stock -- $15.70

AOBC January 19, 2018 17 calls – 75 cents – exit half

After pulling back yesterday, we are still bullish on the gun trades.  We see no reason to exit either opportunity at this point.

HRL January 19, 2018 32.50 calls – 95 cents

HRL December 15, 2017 30 calls -- $2.15

Shares of HRL are now up to $31.25. We are continuing to hold these trades.

Comcast (CMCSA) stock - $37.95

CMCSA October 2017 37.50 calls - $1.20

CMCSA is taking its time recovering, but it’s moving in our direction. We may need to close this one out for a loss, but hold for the time being.

Carnival (CCL) -- $66.50

Carnival October 2017 67.50 calls -- $1.50 (exited half)

The stock last traded at $67.08.  We’re watching this one closely.  If need be, we’ll close out the second half of the October 2017 calls for a loss and hold the stock.  We already exited half of the calls for a win of 67% in September 2017.

NKE stock -- $53.50 entry

NKE October 2017 55 calls -- $1.35 entry

We issued a new trade on Nike (NKE) and on the NKE October 55 call. We may need to close out the calls for a loss, but will still hold the stock.

TrueCar (TRUE) stock -- $16.75 entry
TrueCar October 2017 16 calls -- $1.50 entry
TrueCar January 2018 16 calls -- $2.35 entry

On August 15, we recommended buying TRUE, as well as the October 16 calls and January 16 calls.  The stock is moving in the right direction, last trading at $16.01.

Zillow Group (Z) -- $44.75 entry, exited half for win

Zillow Group (Z) November 2017 45 calls- $3.60 entry, exited half for win

While the stock continues to break lower, we continue to hold.  We already exited half of the stock and the November 45 calls in early August 2017.  We currently hold the second half of each position, as the stock begins to recover at oversold conditions.

Advanced Micro Devices (AMD) -- $13.30 entry

Unfortunately, the AMD September 13 calls did not work out as hoped.  However, we continue to hold the stock at oversold conditions. It last traded at $13.70.

Closed trades:

  • Exited half of Zillow Group (Z) for 8% gain on August 8, 2017
  • Exited half of Zillow Group (Z) November 45 calls for 44% gain on Aug 8, 2017
  • Exited half of CELG October 2017 130 calls for 150% on August 31, 2017
  • Exited second half of CELG October 130 calls for 143% on Sept 1, 2017
  • Exited GOLD Sept 92.50 put and 95 put for a full loss
  • Exited half of LOW September 2017 75 calls for 71% on Sept 7, 2017
  • Exited VNDA stock for 8% on September 8, 2017
  • Exited VNDA October 2017 16 calls for 35% on September 8, 2017
  • Exited second half of LOW October 2017 75 call for 92% on Sept. 8, 2017
  • Exited LOW stock for 4% on September 8, 2017
  • Exited half of FEYE stock for 13% gain on September 12, 2017
  • Exited half of FEYE Dec. 14 calls for 68% gain on September 12, 2017
  • Exited half of FEYE Dec. 15 calls for 63% gain on September 12, 2017
  • Exited half of CCL October 2017 67.50 calls for 67% on September 13, 2017
  • Exited VIX October 2017 15 put for 18% on September 13, 2017
  • Exited VIX October 2017 14 put for 17% on September 13, 2017
  • Exited ZIV stock for 2% on September 13, 2017
  • Exited SVXY stock for 9% on September 13, 2017
  • Exited AMD September 2017 13 calls for a full loss, expired worthless
  • Exited second half of FEYE stock for 16% gain on September 14, 2017
  • Exited second half of FEYE Dec. 14 calls for 100% gain on September 14, 2017
  • Exited second half of FEYE Dec. 15 calls for 89% gain on September 14, 2017
  • Exited CRUS stock for a loss of 7% on September 22, 2017
  • Exited CRUS October 2017 60 calls for a full loss on September 22, 2017
  • Exited half of AJRD November 2017 30 calls for a gain of 200% on Sept 22, 2017
  • Exited half of AJRD November 2017 30 calls for a gain of 168% on Sept 22, 2017
  • Exited AJRD stock for a gain of 13% on September 22, 2017
  • Exited half of AOBC January 2018 17 calls for a gain of 47% on Oct. 4, 2017
  • Exited half of EXPE October 145 calls for 22% gain on October 6, 2017

Ian L. Cooper

Traders Daily