Long Cigna @ 248.75

26 Apr 2023

Mean reversion trade. Keeping in mind 250-251 support broke and the broader market is selling off aside from small pockets.

I'll be watching closely to see if 250 now flips to resistance or if it's a bear trap and big bounce. Stop loss tight.

Entry: 248.75
Stop Loss: 247.75
Target: 255

The market does not seem to care about UNH, Elevance, Centene & Humana all posting strong earnings and relatively strong guidance!

26 Apr 2023

Catatan

SL removed. Will be looking to add in the 247 area. 1/2 position currently.

26 Apr 2023

Catatan

1/2 filled at 247.25. Max position.

Total Average: 248
Target: 255

27 Apr 2023

Catatan

The weakness in this name is baffling considering it trades at a large discount to peers.

Expected Minimum '23 EP (per management's guidance): 24.60
Share price: 248 ----> P/E = 10.08 PE

HUM/UNH - 17+ PE
Molina - ~14 PE

There is no fundamental reason for Cigna to be trading at such a discount to its peers considering it does not face any additional risks (Regulatory or otherwise) that its peers don't face. I'm buying this in a retirement account aggressively under 250 all the way to the bottom if it keeps selling off.

28 Apr 2023

Trade aktif

Descending wedge on the daily. Stop loss moved to break even @ 248.

Seems like we potentially nailed the bottom.

1 Mei 2023

Trade aktif

PT 1 Reached: Sold 1/2 @255.25

1/2 position remaining

3 Mei 2023

Trade aktif

Stopped out on remaining 1/2 at 248 [break-even]

Rebought(long) 1/2 position @ 247.

3 Mei 2023

Trade aktif

Too much value here.

Added 1/4 @ 245.90.

Minimum projected '23 earnings - 24.60

Trading at 10X current year PE and sub 9X '24 projected.

There is nothing wrong with this business and it faces no challenges that its peers don't, regulatory or otherwise.

I will be holding this through earnings.

5 Mei 2023

Trading ditutup: target tercapai

Sold all at 261.

hell of an earnings trade!