Buy Alert: March 26, 2014
Buy Alert: March 26, 2014
Trade Details
Buy Pandora Media (P) May 17th $32 Calls for $2.20 or better
Why?
Pandora is one of those polarizing stocks that investors tend to either love or hate. The Internet music service is dealing with intense competition, but is also a first mover and has many loyal customers.
Lately, P has been getting hit hard as investors rotate out of Internet stocks and into safer sectors. As such, the share price has dropped from the 50-day moving average around $35 all the way below the $30 support level. But, I don’t think this selloff will hold.
P recently signed a partnership with Peet’s Coffee & Tea to roll out customized radio stations to 230 store locations. More importantly, the company’s deal with major car manufacturers to offer its services in cars could be a huge boon in the coming months.
We’re going to spend a little more than normal on the calls in order to buy some extra time into mid-May.
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Category: OTW Buy Alerts
