Hey friends, Tedro here, I want to talk to you about a company I am bullish on longterm but in the short term provides some great opportunities for some Put plays -
On the subjects of cybersecurity, ransomware, and data protection, I am very familiar with a company called CommVault. This company is one of the biggest names in its space and normally considered a leader and innovative visionary. Its bread and butter is a product called Simpana that as you can guess, backs up and restores files. CommVault is geared to large companies and has clients including Governments around the world, U.S. Government agencies like the FBI, U.S. Treasury, Fortune 100 companies, etc. If a company is serious about data protection, they very likely use CommVault.
CommVault as a company is in the stage of its existence where most of its innovation comes at the hands of purchasing companies and integrating these companies into their suite of products.
The ticker did get as low as the $30 price range during the early days of COVID but rode the bull market recently and was heading towards ATH but has been on a significant downtrend since July 2021 including a $2 drop today. Currently the company is trading in the $60’s and having a difficult time finding support.
While I am bullish on the company overall, but with the current price action, it seems to be easy money to purchase monthly Puts and let them ride.
Fundamental Highlights
- The stock is not particularly exciting, with an average volume of 294,000
- They beat their most recent earnings ($0.21 per share, next earnings in May)
- About 60% of the stock is owned by institutions with another 30% owned by mutual funds
IT isn’t the most exciting company but Yahoo Finance feels it is trading under its intrinsic value (Commvault Systems, Inc.'s (NASDAQ:CVLT) Intrinsic Value Is Potentially 98% Above Its Share Price (yahoo.com)), it has also been working to beef up its ransomware protections (Commvault Adds Intelligent Data Services Features to Fortify Ransomware Security (yahoo.com))
TLDR
I currently do not hold any positions for the stock but will be considering some monthly Puts in the short term and keeping an eye out for some Calls after it finds longterm support again.
6 year daily chart with earnings:
2 year daily showing it is trading below historic EMAs and Resistance:
Longterm Support/Resistance numbers:
