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Alexander Paslawsky
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I am a University of Central Florida alumni and recent graduate of the University of South Florida's M.S. in Entrepreneurship in Applied Technologies program. I enjoy researching stocks and ideas that can generate very large gains. I focus my stock and option trading on takeover speculation,... More
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  • 2nd Update: Yo No Queiro Chipotle

    Target achieved. Long $CMG 490 Jun 6th puts.

    (click to enlarge)

    Disclosure: I am long CMG.

    Additional disclosure: Long CMG naked put options.

    Tags: CMG, Short Ideas
    May 27 9:39 PM | Link | Comment!
  • Update: Yo No Queiro Chipotle

    (click to enlarge)

    Chipotle (NYSE:CMG) is right on track to complete the right shoulder of a very large head and shoulder pattern. The 50 day MA at $535 could be tested, but anywhere between 520-535 is a perfect short setup. I will be buying July 18th puts which should expire the day AFTER Q2 earnings as well as shorter dated weekly June puts that I will trade in and out of.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in CMG over the next 72 hours.

    Tags: CMG, Short Ideas
    May 22 11:08 PM | Link | Comment!
  • Frontier Communications Is A Takeover Target

    Frontier Communications (NASDAQ:FTR) provides voice, data, internet, and television

    service to customers primarily in rural areas and small to medium cities in

    the United States. Nearly 70% of their residential customers are located in

    the following states; West Virginia, New York, Indiana, Illinois, Ohio,

    Michigan, Washington, and Oregon.

    (click to enlarge)

    Source: 2013 FTR annual report.

    Since, Frontier operates in rural areas it is much more difficult and costly for

    other telecoms to move in, build and compete with Frontier. The customers

    are spread out and the cost to build a network and take market share is not

    feasible. The only other option for competitors to gain market share is to

    acquire an existing service provider like Frontier.

    Charter Communications (NASDAQ:CHTR) headquartered in Stamford, Connecticut is

    the 4th largest cable operator by revenue in the United States. Charter made

    a bid already for Time Warner Cable (NYSE:TWC) earlier this year, but was

    rejected. In December of 2013, Frontier made a 2 billion dollar all cash deal

    to acquire all of AT&T's wireline business and assets in Connecticut. Frontier

    will have a huge customer base in Charter's home state of Connecticut once

    the AT&T (NYSE:T) deal closes as well as it's existing rural base. Charter acquiring

    Frontier makes sense given the geographical areas it would expand to and

    AT&T wireline assets in Connecticut.

    Liberty Media Corp (NASDAQ:LMCA) would also make a great potential acquirer of

    Frontier for the same reasons noted above. However, Liberty Media could

    also take a stake in Frontier similiar to it's 27% stake in Charter. Frontier

    currently yields 7.37% and pays the divident with free cash flow according to

    their most recent annual report. Not to mention, Frontier has short interest of

    207 million shares as of March 14th 2014. If Liberty Media Corp took a stake

    in Frontier, there would be a frenzy to cover those shares that are short. The

    below chart shows a cup and handle pattern that could push the stock up to

    $6.75 per share from its current price of $5.41.

    (click to enlarge)

    Due to Frontier's unique customer base an acquisition would make perfect

    sense for one of its competitors.

    Disclosure: I am long FTR.

    Tags: FTR, LMCA, CHTR, TWC
    Mar 26 2:39 PM | Link | Comment!
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