OpenTable Inc. (OPEN): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Thursday, June 6, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
OpenTable Inc OPEN Internet Software & Services 7.7 +29.82% $61.37

Why We Like The Stock:

OpenTable Inc (OPEN) is our most compelling buy today due to the fact that it is a top- rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Like OPEN, other Internet Software & Services stocks j2 Global (JCOM), WebMD Health Corp (WBMD), and Dealertrack Technologies (TRAK) have had successful 2013 campaigns thus far, while not becoming over-extended on a long-term basis. OPEN hit recent highs of $70.77 in mid-May, but has since pulled back down to the $65 area. On a weekly basis, OPEN has been in an uptrend since mid-July of 2012, with slight consolidations along the way. Currently, the stock is on the verge of crossing back above its short term moving averages, and has been operating above its 50-day moving average since the very beginning of May. While meaningful support is back down near $60, OPEN's positive technical set-up and trending patterns should remain intact, even in this shaky market. We like OPEN at current prices for a run north of $70.
We Would Be Buyers:

At the current price (~$66.39).

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Company Profile:

OpenTable, Inc. (OpenTable) provides solution that forms an online network connecting reservation-taking restaurants and people who dine at those restaurants. Its solutions include its electronic reservation book (ERB) and and OpenTable Connect (Connect). Its solutions for diners include www.opentable.com, its restaurant reservation Website, as well as a range of mobile applications. The OpenTable network includes approximately 20,000 OpenTable restaurant customers spanning all 50 states, as well as select markets outside of the United States. During the year ended December 31, 2010, it seated approximately 6.5 million diners per month. On October 1, 2010, the Company acquired toptable.com (toptable), a restaurant reservation site in the United Kingdom. In August 2010, the Company acquired Table Maestro, a South Carolina based company that operates a telephone reservation management service for restaurants.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  OpenTable Inc - Last 3 Months

  OpenTable Inc - Last 12 Months

  OpenTable Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

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The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Earnings , Stocks

Referenced Stocks: JCOM , OPEN , TRAK , WBMD

David Moenning


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