WORK Trade on Jun 5, 2020 13:44 from Cklamb: Tradervue User Stock Trades.

WORK
Statistics
Total gain/loss: $20.95 Largest gain: $15.75 (show)
Average daily gain/loss: $20.95 Largest loss: $0.00
Average daily volume: 144 Average per-share gain/loss: $0.29
Average winning trade: $10.47 Average trade gain/loss: $10.47
Average losing trade: n/a Trade P&L standard deviation: $7.47
Total number of trades: 2 Profit factor: n/a
Number of winning trades: 2 (100.0%) Average hold time (winning trades): 17 minutes
Number of losing trades: 0 Average hold time (losing trades): 0
Max consecutive wins: 2 (show) Max consecutive losses: 0
Average position MFE: $10.47 Average position MAE: $-5.94
Intraday Fundamentals
• Slack Technologies shares were sharply lower in after-hours trading Thursday despite better-than-expected results for the company's fiscal first quarter ended April 30 .
• Investors appeared to be reacting with disappointment to the company's " calculated billings" number, which shows some impact from the Covid-19-related economic downturn.
• For the quarter, the collaborative-communications software company (ticker: WORK) reported revenue of $201.7 million , up 50% from a year earlier, and well ahead of the company's guidance range of $185 million to $188 million . The Wall Street analyst consensus forecast had been $188.1 million . Slack posted a non- GAAP loss of 2 cents a share, narrower than the forecast range of a loss of 6 to 7 cents . The Street had projected a loss of 6 cents .
• Slack said it added a record 12,000 net new paid customers in the quarter, boosting the total to 128,000. CEO Stewart Butterfield said in an interview that the increase was the best single quarter gain ever, more than twice the number added in recent quarters. Slack added 90,000 new free and paid subscribers combined, increasing the total to more than 750,000. The company said 963 customers are generating annual recurring revenue of $100,000 or more.
• The data point pressuring the stock is likely "calculated billings," a measure that combines revenue plus the change in deferred revenue, which came in at $206 billion , up 38%, shy of the 50% revenue growth. CFO Allen Shim said in an interview that the number was affected by factors including the timing of renewals and some concessions Slack made to customers feeling economic pressures related to the pandemic and associated downturn.
• Deferred revenue -- and thus calculated billings -- were muted by some steps intended to support clients facing financial difficulties. Shim said a midteens percentage of its customers are in businesses impacted by the downturn, such as airlines and hoteliers. The company also has many small-business customers who have been hurt by the downturn. Shim said the company wrote down some deferred revenue to reflect pushed-out timing on some billings.
• For the quarter ending in July, Slack sees revenue of $206 million to $209 million , above the previous consensus at $199.8 million , with a loss of 3 to 4 cents a share, better than the Street view at a loss of 6 cents .
• For the full fiscal year ending in January 2021 , Slack now sees revenue of $855 million to $870 million , up from a previous forecast range of $842 million to $862 million . Street consensus has been $860.3 million . The company now sees a full-year loss of 17 to 19 cents a share, narrowing from a previous forecast loss of 19 to 21 cents . However, the company withdrew its calculated billings forecast for the full year, citing the uncertainties around the Covid-19 pandemic.
• "[The first quarter] was a phenomenal quarter for Slack, with the addition of 12,000 net new paid customers and 50% revenue growth year-over-year," Butterfield said in a statement. "We believe the long-term impact the three months and counting of working from home will have on the way we work is of generational magnitude. This will continue to catalyze adoption for the new category of channel-based messaging platforms we created and for which we are still the only enterprise-grade offering."
• Butterfield said in the interview that the company should benefit from the spike in new paid customers over the course of the year -- and in years to come. And he noted that, while some customers are affected in the short-run and could reduce staffing (which reduces revenue), he thinks that business is going to come back before long.
• "We're not on a one-way path to the Dark Ages," he said. "This event has forced generational change in how people work that will persist more or less forever." And he said all companies are being pushed down a path toward digital transformation that will benefit Slack and other cloud-software companies for years to come.
Technicals
ADV 17.49 RVOL 2.33 ATR 1.94 Short 8.33% Inst Own 69.9%
Daily

Hourly

Intra

Trading Strategy
• In general I have a long bias on the catalyst with the exception that the jobs report may spur some movement outside of the stay at home plays
• Look for a spike into 30.25 ish at the open and if the tape stalls there take a long on looking for a run back up towards 31
• If the this flushes 30 today, look for a push into the lower 29s and start picking at it there
• Look to short 33.50 if this rebounds early and long this if it holds late in the day
Trade Reviews
Reading the Tape
I got a read on 31 out of the gate that worked if it would have triggered in a timely order. Later in the day. I had a solid read when this was coming off the top falling into 33.20 and not being able to print 33.41 when I hit the short.
Trade Notes
I got filled on the first trade with a long delay. I marketed just under 32 and after a good 90 seconds I filled at 32.11. This started me off 30 cents (at 31.80 ish) down before I could enter a stop or gain bearings on where I got filled. This did manage to move back into VWAP and the SMA allowing me take a partial. I was looking to add and almost decided to add a little back in as it trade back around 31.85. But, I thought I would be better off if I waited and tried to add a little bigger if it came into 30.50. A level that I had marked out off the hourly. A level that acted as support on a gap down and the start of the recent run up. I had committed to adding small all the way down to 29 getting myself in a position play for my deepest level support play. Therefore, I walked away to keep me from overmanaging the trade and missed the add at 30.50. I still got a point and bailed on the trade as is started to fail at 32. I would say that I really to stay focused and get back in on the move back above VWAP after testing 31.25.
The second trade I took on this was probably the best trade of the week when it comes to the set up. The execution feel way. I had watched this come up to the highest part of the PM action and started to fail there. I did not take the trade when the risk was at it best though. I let it fail into the SMA and took the short on the bounce. This started working almost right away and I gave in way to fast on the quick win.