PreMarket Prep Plus: Why Sean Udall Is Buying DraftKings, Apple
Even with the indexes at all-time highs, The Udall Report's publisher Sean Udall still has a few issues on his “buy” radar. The tech stock strategist shared the fundamental reasons for the two issues and detailed his game plan moving forward on Friday's PreMarket Plus show.
Sports Betting Stocks: The first issue discussed was DraftKings Inc. (NASDAQ:DKNG), which reeled from a revenue miss in its third-quarter report. In addition, the issue was punished on Thursday in sympathy with the retreat in shares of Penn National Gaming (NASDAQ:PENN) following its third-quarter print.
From Thursday’s high ($47.42) to the premarket low Friday ($39.78), the issue has shed 16%. Udall said he hopes for a retreat from the report and purchased shares at $41 in the premarket session. He's prepared to buy shares even lower if the decline continues.
“Honestly, I looked at the numbers and they seem pretty good,” Udall said of DraftKings.
Udall On Tech Stocks: In the history of following tech stocks, “the ones that guide conservatively usually end up doing pretty good,” Udall said.
Steve Jobs, founder of Apple Inc (NASDAQ:AAPL), was a master of the technique who “would crush the quarter and guide conservatively.”
While Apple is getting hit on future guidance, it's still pretty good, he said.
The next issue that he is building a position in is Intel Corp. (NASDAQ:INTC). “In fact, as I sell other stuff off, I am picking away at Intel,” Udall said.
“I think it is good correction protection stock; it is basically Dell Tech Inc. (NYSE:DELL) when Dell was at $18-$20, adjusted for the recent split.”
The discussion with Udall from Friday’s show can be found here:
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