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Daily Alert - 1/23/20

Our second recommendation is a short sale of a stock that is facing increasing competition.

Short Sell: Grubhub Inc. (GRUB)
From Shortex Market Letter

Grubhub Inc. (GRUB)
52wk H. 87.98 52wk L. 32.11
Mkt Cap: $5.15B, EPS: 1.04, P/E: 1,311 Beta: 1.23

The food delivery service company is reducing its guidance due to competition, higher expenses on promotion to attract more customers. Trading below its death cross pattern since Aug ’19. Pressured by the plunge (56-40) set on Oct ’19 to new low of 32.11. Reversal has challenged primary resistance at (41-44). However, secondary resistance (59-62) and upper-head resistance (77-79) a paramount. Volatile.

SHORT RANGE: 52-62
COVER SHORT: 38
STOP LOSS: 73

Joseph Parnes, Shortex Market Letter, www.shortex.com, 800-877-6555, January 16, 2020