jueves, 22 de mayo de 2014

Electronic Arts Inc. EA. Trading idea and stock analysis. Last Price 34.60(+0.64%) 05-21-2014

Electronic Arts Inc. EA. Trading idea and stock analysis. Last Price 34.60(+0.64%) 05-21-2014.

Hi mates. I would like to talk about EA. This stock has a P/E ratio of 1730 and an EPS of 0.02. A very High P/E from my point of view.
Let´s see some fundamentals.
Sales Growth 2013: -5.85%
AVG sales growth 4 years:-0.135%
The stock went up with the earnings report (05-06-2014) the EPS consensus was 0.03 and the EPS was 0.35 ( a 1066.67% more than expected).
Let´s see the chart.


Supports and resistaces:
S1:$32.1 S2:$29.39 R1:$35.64 R2:$38.04
The MACD is going to cross the signal.
The RSI is at 71% overbought.
The stochastic is going up at 53%.
Elliot waves:
The stock is going to draw the abc pattern. There´s a fail on the 5rd wave in my opinion.
The buy range for this stock is [$32.04;$32.53]. I heard that there´re insiders sellig shares of the company, and the sotck seems to be overbought. So I recomend to wait until the price enter into the buy range.
I will analyze again the stock in order to calculate the targets when the price reach the buy range.
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