From Cabot Wealth Advisory 11/24/14 Sign up for Cabot Wealth Advisory—it’s free!
The number one attraction for today’s recommendation, CyberArk Software (CYBR), is the chart.
The stock came public on September 24, just two months ago, at 16. Two days later it closed at 31—signaling that big investors were interested. That was followed by a normal period of consolidation, even during the October market wipeout—which was the second clue that the big boys were picking up shares. And then two weeks ago, following a superb third quarter earnings report, the stock vaulted out to new highs on big volume.
Now, some people will look at this chart and say, “Are you nuts? That stock is an accident waiting to happen.” Furthermore, they might look at the stock’s PE ratio and note that it’s a stratospheric 122.
This stock is not for them.
But people who are attracted by this chart will say, “If the big boys are buying, I’m going to find out what’s going on.”
Mike Cintolo was one of them, and he liked what he found so much that he put CYBR in last week’s Cabot Top Ten Trader.
Here’s an excerpt.
“The entire network security industry is booming, and CyberArk is a small, newly public company that looks to be the leading player in an important niche. CyberArk focuses on attacks that steal the credentials of high-level employees (so-called privileged accounts) to get inside a firm’s IT networks and navigate it, giving them a better understanding of the security architecture (and thus allowing larger-scale breaches in the future). CyberArk’s software aims to identify and eliminate these hackers by analyzing and protecting the privileged accounts; it has more than 1,600 customers and revenues have been growing from zero in 2010 to north of $90 million this year, including a huge 66% jump in the just-reported third quarter...Consider it an interesting speculation.”
So (as I always say), you could just buy CYBR here. Good luck.
But a smarter move would be to check on Mike’s latest advice on the stock, as well as other stocks that pass his technical hurdles, and get his wisdom every week. Details here.
|CyberArk Software (CYBR)
94 Em-Ha’moshavot Road
Petach Tikva, 4970602 Israel
972 3 918 0000
|Index Membership: N/A
Industry: Business Software & Services
Full Time Employees: 317