The S&P 500 broke out to new highs last week, as did emerging markets.
That’s good news for Momentum Trader Alert, and this week’s recommendation, Altaba Inc. (AABA), is one of these breakout stocks.
Altaba is the successor to Yahoo, which stopped trading last month after Verizon bought the company, excluding the Alibaba and Yahoo Japan holdings. Today, what is left is a closed-end investment management company which has assets that include investments in China’s Alibaba (BABA), Yahoo Japan and other cash and marketable securities. Shares of Alibaba are valued at about $33.7 billion, while Yahoo Japan is valued at $7.7 billion. Altaba also holds $12 billion in cash, marketable debts and other assets.
Altaba Inc. (AABA) versus the S&P 500 year to date.
Momentum Trader Alert Analysis
Buy Altaba Inc. (AABA) at market today and place your stop at $51.50.
If you want to play the options, I recommend the AABA October $55 calls (AABA171020C00055000), which last traded at $4.40 and expire on Oct. 20.
Nicholas A. Vardy