Zillow is at the low end of its one year "valuation range" of 14-13 times sales. This PSR is the Price-to-Sales-Ratio and is a measure of the market cap (Price) to the revenues (Sales) of the stock. It is a helpful measuring tool.
Zillow has unfurled and come under pressure after the announcement about merging with Trulia. Since then it has fallen from 150+ down to the 105 level.
CCI (Commodity Channel Index) is a pure technical measurement of price against its 21 day moving average) is turning up, which suggests that downside momentum is waning.
Earnings are due in early November. There is a key level of resistance up at the $125 level and a level I am targeting for a move higher from the 109 level now. I view downside risk as the $100 level. Upside of 15 pts, vs 9 pts of downside. I would be buying a drop to 103 also as that is a big support level also.
Tim
108.96 last 3:27PM EST 10/23/2014
Komen
timwest
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It took a lot longer and had a few sharp setbacks to lower levels, but ultimately was able to stay in this Zillow until it reached just shy of the target. Call options were the way to go to stay in when it gapped under 100 on earnings.