Tradespoon Expects Compressed Margins and Volatile Free Cash Flow to Hurt Future Growth.
Online PR News – 08-July-2013 – Chicago, IL – Tradespoon, a daily stock-pick service that uses a proprietary statistical system to develop trade recommendations, today initiated coverage of The Clorox Company (CLX) with a sell recommendation. Tradespoon empowers individuals with access to with the same trading systems used by large institutional investors, recommending both stock and options trades with predefined directions for market entry and exit.
Clorox manufactures and markets consumer and professional products worldwide. In Clorox’s latest earnings report, the company reported a revenue increase of 4.5 percent. However, the company saw margins compressed by higher input costs, a factor that could hurt potential profit growth in the future. In fact, earnings per share for the last quarter grew by 4 percent – the result of share repurchases more than anything else. The stock closed Friday’s trading at $83.82. Year-to-date, CLX is higher by 14.3 percent, compared with a similar increase in the S&P 500.
Tradespoon’s recommendation and price outlook for Clorox includes analysis of the fundamental and technical factors in the stock. Tradespoon’s proprietary platform identifies stock, option and option spread trades that present ideal risk/reward scenarios.
Tradespoon tracks 1,000 individual U.S. equities using such variables as long-run earnings per share growth, stock volatility, beta, correlation between the S&P 500 and the stock, among numerous other factors.
For a detailed outlook on Tradespoon’s outlook for Clorox, please sign up for a free trial here.
Tradespoon provides subscribers with daily trading recommendations using a statistical system for maximizing returns on select equities. Tradespoon’s proprietary system analyzes the fundamental and technical factors behind the movement of 1,000 individual U.S. equities daily. Tradespoon tracks each stock using such variables as long-run earnings per share growth, stock volatility, beta, correlation between the S&P 500 and the stock, among numerous other factors. Tradespoon’s management includes a team of industry veterans of quantitative trading systems and statistical analysis. For more information, please visit http://www.tradespoon.com/.