End of week summary,
Yesterday brought to an end the mid point in August trading action. Again we saw the $NSDQ100 push upwards against strong resistance continuing the trend of sideways movement.
As final actions of the week I opened up positions on $WIX (Wix.com Ltd ) and $ZEN (Zendesk) which have both been crushed recently following earnings reports. Zen is currently trading at -23% from its 52 week high. It hasn’t done so well during the pandemic but it is strong technology firm and undoubtedly will bounce back well in future quarters. Zen has now posted two earnings misses on the bounce, but its revenue has continued to climb and its EPS is now back into positive territory at $0.13.
WIX has been battered in the last 12mths and is 42% off its 52 week high. On the 11th August WIX posted earnings that were better than forecast but its EPS remains negative at ($0.28). Revenue has continued to climb but WIX is still struggling to return profits. Nonetheless when we consider the current share price there is potentially some long term value here.
With the NASDAQ and $SPX500 so high right now value opportunities for bluechip firms are sparse so we need to tread carefully. $China50 seems to offer some interesting buying opportunities right now but here we have other risks to navigate. I may look to add one or two additional positions here in the coming weeks.