🚀 Today's Big Ideas: Alibaba, Tesla, McDonald's
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TODAY'S BIG IDEAS
ALIBABA GROUP HOLDING-SP ADR sets up for +9.6% rally in 1 month
TESLA INC sets up for +29.1% rally in 3 months
MCDONALD’S CORP sets up for +6.7% rally in 2 months
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(1) Score 9.7 (out of 10): ALIBABA GROUP HOLDING-SP ADR sets up for +9.6% rally in 1 month
What’s Going On Here?
Chinese tech stocks have not been kind to investors as the Chinese regulator has taken a stricter oversight role. Alibaba, often compared to Amazon, has been a casualty recently as Chinese ride-hailing giant Didi (the Uber for China) is preparing for US delisting. Alibaba shares rebounded as the company announced a management reshuffle of its commerce business and its CFO
Why Now?
ALIBABA GROUP HOLDING-SP ADR has triggered a new high volatility signal (3 month). During similar occasions, ALIBABA GROUP HOLDING-SP ADR shares had a median return of +9.6%, over the following 1 month – based on 10 historical occasions with 10 of those showing positive returns (100%). This buy signal for ALIBABA GROUP HOLDING-SP ADR received a high score of 9.7 (out of 10). This insight was generated on 2021-December-6 with last price of 123.6
What’s This Company About?
ALIBABA GROUP HOLDING-SP ADR is in the E-Commerce/Products business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. ‘Wall Street’ analysts think the stock price will be worth 67.4% more (average). Ticker symbol: BABA US.
What’s My Risk / Reward and Time Horizon?
We found 1 month to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 135.44 (+9.6%) has been reached. Based on ALIBABA GROUP HOLDING-SP ADR’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 106.8 (last price at 123.6), which is equivalent to a -13.6% decline.
(2) Score 7.5 (out of 10): TESLA INC sets up for +29.1% rally in 3 months
What’s Going On Here?
Tesla shares fell into bear market territory after the SEC reportedly opened a probe into solar panel. The probe is in response to a whistleblower complaint alleging the company has failed to properly notify its shareholders of solar panel defects. The shares initially fell -6% but closed almost unchanged.
Why Now?
TESLA INC has successfully tested a support level. During similar occasions, TESLA INC shares had a median return of +29.1%, over the following 3 months – based on 6 historical occasions with 4 of those showing positive returns (67%). This buy signal for TESLA INC received a high score of 7.5 (out of 10). This insight was generated on 2021-December-7 with last price of 1009.01.
What’s This Company About?
TESLA INC is in the Auto-Cars/Light Trucks business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth -19.2% less (average). Ticker symbol: TSLA US.
What’s My Risk / Reward and Time Horizon?
We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 1302.87 (+29.1%) has been reached. Based on TESLA INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 862.41 (last price at 1009.01), which is equivalent to a -14.5% decline.
(3) Score 8.6 (out of 10): MCDONALD’S CORP sets up for +6.7% rally in 2 months
What’s Going On Here?
MCDONALD’S CORP is teaming up with artist Mariah Carey – making a limited edition line of Carey-themed merchandise during the Christmas period. Some analysts argue that paying down debt is no longer the company’s priority and rather investors might expect an accelerated pace in corporate share buy backs.
Why Now?
MCDONALD’S CORP has reached a new shorter-term high. Previously, during similar occasions, MCDONALD’S CORP shares had a median return of +6.7%, over the following 2 months – based on 10 historical occasions with 8 of those showing positive returns (80% hit ratio). This buy signal for MCDONALD’S CORP received a high score of 8.6 (out of 10). This insight was generated on 2021-December-7 with last price of 259.91.
What’s This Company About?
MCDONALD’S CORP is in the Retail-Restaurants business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 4.1% more (average). Ticker symbol: MCD US.
What’s My Risk / Reward and Time Horizon?
We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 277.29 (+6.7%) has been reached. Based on MCDONALD’S CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 249.51 (last price at 259.91), which is equivalent to a -4% decline.
For more investment insights, please visit us at www.LongShortBets.com