One Work from Home Stock Towers Above the Rest
The age of the cubicle has come to an end.
Over the past few weeks, multiple business giants, including a favorite of mine Microsoft Corp. (MSFT), have declared that working from home is the new normal. Hundreds of thousands of employees, if they are able, are now indefinitely working from the comfort (or noisy discomfort) of their own homes.
That’s great for the companies, sure. Bit of a money saver, since they don’t have to keep the lights on back at corporate.
But that’s only if you have the tools to manage all those employees and the tech they need to keep these companies running.
And that’s a big part of what I’m watching this week: companies situated perfectly to benefit from the continued shift from office parks to remote work.
Most notably is IBEX Limited (IBEX), which provides technology-enabled customer experience solutions. That’s a fancy way of saying that big companies can utilize IBEX to outsource customer services, like tech support, as companies rethink the need to have on-site customer-engagement operations.
Why bother having your own specific customer service when you can have the pros do it for you? It can save client companies money, time, and space in the long run because they don’t have to worry about managing large remote customer service teams.
IBEX shows it’s prowess by working with a large range of customer clientele like telecommunications, retail, healthcare, financial services, and utilities markets.
The company has beat earnings estimates for the last three consecutive quarters by an average of 53.9%, and I think they will continue that trend tomorrow when their final fiscal 2021 report is released.
The stock is trading right at key support, which represents an optimal technical set-up, and tomorrow’s earnings report could provide the catalyst for the stock to bounce off that support and trade higher than ever.
So, I think buying IBEX Limited (IBEX) today, ahead of tomorrow’s earnings release. Hold your IBEX shares with a 20% trailing stop, just in case.
Potential Play with the Reddit Meme-Mob
But work from home isn’t the only thing I’m looking at this week. I’ve also got my eyes on Clover Health Investments Corp. (CLOV).
This is a volatile stock. Back in June, shares of CLOV jumped as much as 220.55% in just three trading sessions only to come crashing back down a few weeks later.
That volatility was, naturally, driven by Reddit traders piling onto the stock then pulling out en masse.
Now, it looks like the stock could be attracting that very same crowd of Meme-mobsters. Last Wednesday’s session saw a significant jump, only to once again give those gains back by Friday at close.
This is a pattern and I like what I’m seeing.
If CLOV trades back up to $11.50 by September 17, this Friday, I like buying the CLOV September 24, 2021 $11/$10 Put Spread for $0.40 or less.
Environmental Plays to Watch
And finally, I’m watching Invesco Solar ETF (TAN), an exchange-traded fund that seeks to track the investment results of the MAC Global Solar Energy Index.
TAN holds a basket containing some of the most well-known solar-related companies from around the globe, not just the U.S. That distinction, global versus domestic, is very important because some countries are pushing harder to shift toward clean energy than others. That gives the investor a nice diversity and plenty of profit opportunities.
The stock had a huge run up last fall when clean energy became an investing buzzword. Since, it has come back down, but now we are in a post-AR6 IPCC report world and there’s a very good chance these stocks will start seeing some upside.
If TAN closes above $88.00 before the end of September’s trading, I like buying the TAN January 21, 2022 $88/$90 Call Spread for $0.80 or less.
That’s what grabbed my attention this week. What’s on your mind? Drop me a line and tell me all about your personal watchlists for this week at firstname.lastname@example.org.
There’s a chance it will be featured in this week’s Buy, Sell, or Hold, so don’t be shy.
Until next time,