Tim Bovee, Private Trader: Wednesday's Prospects: Round 2

Tuesday, August 5, 2014

Wednesday's Prospects: Round 2

Only one symbol made it past the first round of analysis, and it was on my supplemental list of innovative companies, enterprises whose stories suggest that they're dong something beyond the regular round of business.

The company is T-Mobile US Inc., or TMUS, and I put it on my list because it appears in Fast Company's "Most Innovative Companies 2014". The T-Mobile article is here.

Fast Company's Max Chafkin wrote of T-Mobile, "The cell phone industry is ripe for reform, but who expected changes to come within its own ranks?" He then listed T-Mobile's innovations, both in substance and style, as he made a case that the 4th-largest U.S. carrier is the leader in profound changes that will shake up the moribund sector.

TMUS has a bullish chart since it began trading in May 2013 although it has pulled back a bit from its peak of May 29. It will take a detailed look at the chart to determine whether a major downward correction is underway or whether a fresh rise has begun.

Zacks gives TMUS a bullish rating. The stock is grossly overpriced in terms of growth estimates.

It's an interesting stock, and I think it's worth a closer look, both under my shorter-term and longer-term rules. I'll post a full analysis prior to Wednesday's opening bell, without waiting for confirmation.

-- Tim Bovee, Fukuoka, Japan, Aug. 5, 2014 New York time

References

While traveling, I'm performing my analysis on a smaller universe of symbols and on an altered schedule. See "August Schedule" for details.

My shorter-term trading rules can be read here. My longer-term trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here.

My chart assessments are based on Elliott wave analysis, which tracks patterns in price movements. The principal practitioner of Elliott wave analysis is Robert Prechter at Elliott Wave International. His book, Elliott Wave Principle, is a must-read for people interested in this form of analysis, as is his most recent publication, Visual Guide to Elliott Wave Trading.

Several web sites summarize Elliott wave theory, among them, Investopedia, StockCharts and Wikipedia.

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.