While I do not predict, I do play the trend and the probabilities in my trading. I am currently long 100 shares of Priceline stock at an average price of $723 a share. Thanks to Expedia’s much better than expected earnings and sales results $PCLN holders got to experience a big gap and run on Friday, it was a wonderful thing. With earnings scheduled on May 9th and the market reversing into an uptrend we have a chance for a big win here.

Top Ten Reasons $PCLN could go to $800

  1. IBD 50 stock #7 in Group 5 in an up trending market; any other reasons needed?
  2. Trend line break and run should logically go through all time highs and end at the century mark of $800.
  3. P/E of 32 for 59% annual sales growth? The P/E can expand to bring this to $800.
  4. It should play follow the leader with the $EXPE chart.
  5. If this stock was $76.21 instead of $762.13 everyone would be able to understand the advance easier.
  6. Accumulation score of B+ in IBD, money managers need this winner on their books.
  7. Apple traders will begin to use Price line for alpha if $AAPL does not take off soon.
  8. Return on equity of 55%, that even beats $AAPL and this is rewarded in the stock market with higher prices.
  9. Earnings expectations should lead to traders and investors holding this one in anticipation of $EXPE blow out part II.
  10. It is hard to bring a stock like this down with so many positive reasons to hold. The ticket to get on board just gets more and more expensive becasue the riders do not want to give up their seats.

As always try to never risk more than 1% of your total capital on any one trade. Obey your stops, if this one closes below its 5 day exponential moving average I will have to sell it, and admit that I was wrong.


By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.