Long Position on COUP @ $57.00 on 6/5/2018 (Momentum)

Coupa Software Incorporated (COUP) provides cloud-based spend management platform.

The company's platform connects organization with suppliers globally; and provides visibility into and control over how companies spend money, as well as enables businesses to achieve savings that drive profitability.

Its platform consists of procurement, invoicing, and expense management modules that form its transactional engine and capture a company's spend; and offers supporting modules, including sourcing, spend analysis, contract management, supplier management, and inventory management.

The company markets its platform to a range of enterprises in various industries, such as healthcare and pharmaceuticals, retail, financial services, manufacturing, technology, and others primarily through a direct sales force worldwide. 

Shares have formed a bullish "cup and handle" and are expected to move higher out of this formation. The firm reported its quartrly results last night. Coupa lost 1 cent a share, nearly breaking even; much better than expectation of a loss of 11 cents a share. Revenue climbed to $56 million.  Subscription revenues were $50.0 million, an increase of 40% compared to the same period last year.  Going forward, Total revenues are expected to be between $56.0 and $57.0 million. Subscription revenues are expected to be between $51.0 and $52.0 million. Higher share prices are expected for this stock.

Entry Point: $57.00

Stop Loss: $54.20

52-Weeks Trading Range: $28.52 - $55.48

Target Price: $62.70

Updates

6/15/2018 2:12:42 PM

COUP closed at $62.95

Position closed on 6/15/2018 at price of $62.95 with a 10.44% gain in 10 days.

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