20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
The Street was unimpressed by Funko Inc (NASDAQ:FNKO)’s sturdy first quarter. The stock plunged 7.8 percent in spite of top- and bottom-line beats, but Stifel came to the company’s defense.
The Rating
Analyst Drew Crum maintained a Buy rating on Funko with an $11 price target.
The Thesis
Citing growth in "Avengers," "Star Wars," "Rick & Morty" and Pop! vinyl sales, Crum said Funko exceeded Stifel's estimates in both revenue and earnings before interest, taxes, depreciation and amortization.
“The upside was partly due to a ‘pull-forward’ of shipments ahead of planned investment spending in Europe; this was anticipated and provided an estimated $3 million-$5 million benefit,” Crum said in a Friday note.
“ ... Even without this, overall the company fared far better (relative to toy manufacturers) amid the Toys R Us liquidation.”
Adjusted gross margins spiked 210 basis points year-over-year in spite of $1.8 million in Toys R Us-related charges, and Stifel regards Funko’s reaffirmed guidance a “modest upgrade” considering it reflects such growth-offsetting charges.
“Overall we thought this was a solid start to '18, marking the third consecutive quarter (and as a public company) Funko has met/exceeded Street numbers, which should build further confidence around the business, in our opinion."
Price Action
Funko shares were up 1.63 percent at $9.68 at the time of publication Friday.
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20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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