"Everyone has a plan 'till they get punched in the mouth" - Mike Tyson

June 18, 2011

Breaking down Interclick

Interclick (ICLK) provides solutions for data-driven online advertising through display and video advertising platforms.  Scanning the ST50 charts I noticed some unusual activity in the chart over the last 3 months.  After doing some research on the stock I have found some useful info:
-          They posted 67% Y/Y revenue growth in Q1 11’ over Q1 10’.  These revenues were down 40% sequentially due to seasonality but still slightly above expectations.  The company expects 40% revenue growth for the fiscal year.

-          This week volume surged as investors and funds learned ICLK will be added to the Russell 3000 on June 24th. 

-          From April 14th to June 3rd Discovery Group I, LLC accumulated 1.35 million shares or 5.5% of the company between 6.72-7.00.  This explains why even though the market has corrected, ICLK has held up extremely well and there now is a huge floor in the stock price.   
Now to the chart:

-          The stock is currently significantly above the upper BB.  Every time this has happened it has been hammered. 
-          The daily MACD is pointing up but the weekly has yet to confirm with a bullish signal line cross.  A test is imminent. 
I don’t have a position in ICLK and would not try to chase this right now.  I will look to enter a swing trade after some consolidation.  A good entry for that trade could be around 7.15 but we'll see how things unfold.     

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All ideas shown on this blog represent the authors opinion based on the data available.