Long Position on STNE @ $40.50 on 11/29/2019 (Momentum)

StoneCo Ltd. (STNE) provides financial technology solutions that empower merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and technology and solutions to digital merchants through sales and technical personnel and software vendors.

As of December 31, 2018, the company served approximately 267,000 clients, which included digital, and brick-and-mortar merchants, primarily small-and-medium-sized businesses; and 108 integrated partners, such as global payment service providers, digital marketplaces, and integrated software vendors.

Shares of this recent IPO have formed a bullish "flag" following the company's earnings report on November 21st. The company reported 3rd Quarter September 2019 earnings of $0.17 per share on revenue of $169.3 million. The consensus earnings estimate was $0.18 per share on revenue of $131.4 million.  Revenue grew 61.1% on a year-over-year basis. Higher share prices are expected for this stock.

Entry Point: $40.50

Stop Loss: $30.00

Trading Range: $16.14 - $45.62

Target Price: $45.10

Updates

12/31/2019 2:17:29 PM

Closed at $39.75

Position closed on 12/31/2019 at price of $39.75 with a -1.85% loss in 32 days.

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