Web.com (WWWW) — post market blow up might be tomorrow’s bounce. (November 05, 2014)
I want to do a real quick look here at Web.com ( NASDAQ:WWWW ). Long, long, long base here after a pretty nasty move lower. So this is looking like a potential breakout, right? It looked like that to me, like this is something that you’re looking at, it could move higher.
Here’s the problem though; the company announced earnings after hours and the stock is now, as I look at it, it’s trading down to about $16.00. This could be a buy tomorrow morning because it’s like 25 percent down if it opens at 16.00; it’s not like the company’s going out of business. This could be a big, big buying opportunity tomorrow morning.
What I would suggest doing though, is rather than just reflexively buying it at the open, and by the way, earnings are nasty, stock’s down quite a bit. Look at the weekly chart; this is not a stock that’s going to 40.00 anytime soon, unless they do a reverse 1-for-2 stock split. This could be a short-term morning trade, like first thing in the morning, if the stock starts moving up you look to buy it.
And then your plan going in would be to sell it before the end of the day, because you’re probably going to see a lot of follow-on selling pressure, if it does start to climb too much. But for the time being I would just watch how this stock opens in the morning. If it starts moving off of that 16.00 level you can buy some for a quick trade; as long as you keep a well defined loss slightly below 16.00, or below the opening price over the first few minutes, whatever that is.
Free Chart