CHGG Long PlayCHGG long play, 1% max loss.
Price action looks like a good consolidation.
Purchased position @ $39.14, Stop is $38.24/ Limit price is 40.94
2:1 Ratio Win Loss,
Lets see if it moves up into a higher position.
CHGG trade ideas
$CHGG Seller were to hasty & will probably regret it.Chegg had a good earnings report but was no tto the standards of many, selling was intense, but then common sense prevailed. The stock has had multiple upgrades lately and offers great growth with Revenue up 25% and the high margin services sector has 34% growth. Long distance and digital education will increase greatly in the years to come as governments see the benefits and cost effectiveness. Education has a major barrier ahead, recruitment is becoming very difficult and the appeal to new graduates to enter the industry is dwindling. Chegg has a very strong and sustainable future ahead and options traders this week were buying the $60 CAlls for Jan 2020.
COMPANY DETAILS
Chegg, Inc. is a student-first connected learning platform. The Company helps students study for college admission exams, find the colleges, get grades and test scores while in school, and find internships that allow them to gain skills to help them enter the workforce after college. The Company matches domestic and international students with colleges, universities and other academic institutions (collectively referred to as colleges) in the United States. It also offers eTextbooks library for rent and sale. The Company also has live tutors on its connected learning platform available to students online, anytime, anywhere through its Chegg Tutors service. It provides access to internships to help students gain skills that are critical to securing their first job. It offers two product lines: Required Materials and Chegg Services. The Required Materials product line includes the rental and sale of print textbooks and eTextbooks, as well as the commission it receives from Ingram
CHGG 1Chegg is a up and coming tool used by students for textbook needs. Subscription based programs are continually on the rise and given the outrageous status of textbook ownership across north american institutes they have managed to continuously grow. However with a recent data breach, lawsuit, and general correction in the NASDAQ (QQQ), CHGG is beaten down. Earnings will be reported on Oct 29th, however given the ludicrously high evaluations I cannot personally justify constant all time highs especially in growth based tech stocks which have yet too turn a profit. I am simply holding outright shares and will likey hold thru earnings or offload before hand if strong run up occurs.
