Categories: Momentum Trader Alert HotlinesStock Market News

A Tech Holding Company Breaks Out to the Upside

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

Recommendation

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.

Portfolio Update

Sincerely,

Nicholas A. Vardy

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.