1. Is Linkind cheap?
A)P/E ratio of 645 ,compared to FB P/E 116, GRPN N/A, ZNGA P/E N/A... Well 2 best is not bad right but still paying 645 times the earnings they make they have come out with really good earnings.
B) YTD Price of stock. LNKD 62%, FB -42%, ZNGA -69%, GRPN -67%. Well that's something right i mean the markets is never wrong so ask yourself why is up
C) Past estimates with real estimates.using EPS
Q2 last year-- Estimates -.0,038 Actual 0.1$,, Q3 estimates -0.032$ actual 0.06, Q4 estimates -.008 actual 0.12$ and the Q1 estimates, 0.017 actual 0.15. So its not bad we can see why it kep its evaluation but to be able to sustain the kind of growth well see. So its not cheap but its a good company but compare to its competitors i don't see it at the price level.
2. Technical analyzes, is it the time to buy
Well What do we have hear its in between the 20 and 50 SMA. has high correlation with FB potential upside to the 109 level and downside to the 90 level.
2. A) Well here we have a potential risk of 7 points to the upside and 12 points to the downside so a 1 to 2. But with a current ratio i use you have a 1 to 7 using the highs and the lows of the daily chart. So you are limited to the upside. So its a good risk to reward.
B) Now remember FB is the mother stock so it always follow the mother. There is a 42% gap between LNKD, and FB so keep in watch.
C) Business cycles ZYNGA affects Facebook but doesn't affect Linkind
Facebook does affect Linkind.. So this is why you can't seen it affect LNKD and the fact the there are institutions playing
3. How can I play for the best gains
Now you can short the stock or you can buy puts which is the same thing. Many of you would like to play the Calender Bear spread give you are good Risk to Reward safety or you can just but puts nothing fancy September puts at 8$ for a commission of 5$ with a potential gain between a 10%-80% or a potential loss off 10%-30%.Short term long term you're options can expire and be worthless.
4. Last be confident on you're trade, if you are wrong and breaks you'are levels then just exist and take a loss no biggy and take a shot of it next time or another stock. but personally remember use the last earnings for you're advantage Smart money sold off after a good earnings and went down okay and LNKD when down during options expiration week. Again smart money leaving the stock. If you guys have any questions. just let me know take care :).
