Long Position on CDK @ $33.65 on 11/4/2014 (Momentum)

CDK Global, Inc. (CDK) provides integrated information technology and digital marketing/advertising solutions to the automotive retail industry.

Its solutions automate and integrate critical workflow processes from pre-sale targeted advertising and marketing campaigns to the sale, financing, insurance, parts supply, and repair and maintenance of vehicles.

The company serves approximately 26,000 retail locations and automotive manufacturers in approximately 100 countries.

This recent IPO is a spin off from ADP, Inc., the payroll and human-resources management giant, CDK Global pursues one attractive business angle — offering information technology and digital marketing products to car retailers.

Accordingly, CDK is a play on the ongoing recovery in U.S. auto sales as the economy and employment continue to grow. It’s also an emerging markets play of sorts, since it has a big global footprint. CDK has solid recurring revenue and margins, a healthy balance sheet, and strong cash flow. Shares have formed a bullish "cup and handle" following company's solid earnings report. Higher share prices are expected for this stock!

52-Week Trading Range: $25.00 - $34.35

Entry Point: $33.65

Stop Loss: $32.00

Target Price: $37.05

Updates

11/11/2014 9:57:44 AM

CDK reached our target price. Closed at $37.11.

Position closed on 11/11/2014 at price of $37.11 with a 10.28% gain in 7 days.

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