The 2016 Rio Summer Olympic games are little more than a week away, kicking off on August 5th.
Last time around, with the 2012 London Summer Olympics, many in North America had trouble watching because of the time difference. But with Rio two hours ahead of the U.S. East Coast, this time around we’re going to have even better coverage of the games.
Even better… NBC is planning on making every event available for live streaming via your TV, tablet, and smartphone. And that means that we’ll have much more time to glue ourselves to the games.
But as fans get ready to strap on their soda guzzler helmets, there’s one stock you should be watching closely…
This company generated nearly $41.3 billion off the back of the 2012 Winter Olympics in Sochi, taking in 80% of its profits from ad space sales.
Its stock is trading at all-time highs, providing an annual return of 22% over the last five years, and it beat its expected earnings this morning.
And with its incredible new technology, this stock could jump even higher by the closing ceremony on August 21st…
Why You Should Watch CMCSA Closer than the Olympic Games Next Week
We’re in a new, digital era where streaming and on-demand services lead in providing real-time global coverage of all major news and sporting in real time.
So it’s not enough nowadays for a broadcasting company like Comcast (NASDAQ: CMCSA) to simply offer the best television programming. To keep far away from the ever-growing graveyard of basic cable providers, video stores, and movie rental kiosks, these companies need to find new ways to compete.
And Comcast has been doing just that…
Aside from acquiring 51% and becoming majority owner of NBCUniversal on January 29, 2011, Comcast has been steadily increasing its high-speed internet subscriptions, boosting its sales and revenue even further.
And its latest technology, the X1 Entertainment Operating System, now provides subscribers a unique interactive TV experience complete with a voice-controlled remote. And its strategy of keeping you tuned in for everything you could possibly want instead of switching to alternative sources, like Netflix and Hulu, seems to be very promising.
Now according to research provided by www.thestreet.com, Comcast is already installing roughly 40,000 of these X1 boxes a day and has its eyes set on increasing that number just in time for the summer games. I’d even go so far as to say that Apple and Amazon now have a worthy competitor that they should keep a close eye on.
But its internet and X1 subscriptions aren’t the only areas in which it’s doing extremely well…
The stock is also winning.
CMCSA has been trading at all-time highs for the past 52 weeks, having recently broken out above its high of $65 in July 2015. And after beating its expected earnings this morning, the stock jumped to over $68 during pre-market trading.
What we’ll want to continue watching for is if the stock’s old resistance becomes new resistance. Here’s a look at where the CMCSA was trading two days prior to earnings:
Since favorable earnings and revenue numbers came out, the stock popped up in price past $65.
And depending on the profits Comcast takes in from its ad space sales, viewership numbers, and X1 installations during the Olympics, it may not look back at that $65 price area.
Regardless of where the stock moves, we’re looking at a nice options set-up…
Go Long on CMCSA to Make Some Extra Cash in August
Whether you’re familiar with or a fan of Investor’s Business Daily founder, William J O’Neill… now may be the best time to time to explore his philosophy of buying stocks that are making new highs in anticipation of them continuing higher.
Now I’m not saying that CMCSA will continue to trade higher and higher from the start of the Olympics to the finish. But the future does look promising right now. And if its new X1 technology proves to be successful during the Olympics, we can anticipate an even bigger presence by Comcast in huge sporting events in the future.
So as an options trader, you’ll want to keep a close eye on the stock and consider shorter-term options trades (within a 20-30 day time frame). If you see the price continuing higher, you can look to buy calls to lock in some nice gains. And if the stock does happen to pull back in price, you can still look at buying puts to turn a decent profit.
Either way, you’ve got a great opportunity to make some cash on Comcast while you enjoy the Olympics.
Here’s Your Trading Lesson Summary:Comcast Corporation (NASDAQ: CMCSA) generated nearly $41.3 billion off the back of the 2012 London Summer Olympics, taking in 80% of its profits from ad space sales. It’s already trading at 52-week highs. And depending on the profits it receives from ad space sales, viewership numbers, and X1 installations during the Olympics, we could see the stock skyrocket to all-new, record highs… making it the #1 stock to watch between August 5th and August 21st.
Have a great week! I’ll be back with you on Friday…