Twitter Inc (NYSE:TWTR) Rally’s on Take Over Hopes

Twitter Inc (NYSE:TWTR) Rally’s on Take Over Hopes

Twitter Inc (NYSE:TWTR) Rally’s on Take Over Hopes

Things are so bad at TWTR that the company is moving higher on the slim hope someone will buy them. While it maybe possible the real question is what would they pay for the dying Unicorn. This is not a rally I would buy.

The TWTR model has never made any money and the value is questionable. Institutions are net sellers, bigger Institutions are leaving being replaced by smaller firms and a lot of Mum and Dad investors, that is not encouraging.

Institutional Holders

% Shares Owned: 44.57%
# of Holders: 662
Total Shares Held: 312,803,212
3 Mo. Net Change: -20,988,022
# New Positions: 69
# Closed Positions: 95
# Increased Positions: 310
# Reduced Positions: 264
# Net Buyers: 46

Efficiency

Company industry sector
Revenue/Employee (TTM) 609,701 13,757,217 65,942,047
Net Income/Employee (TTM) -112,447 1,205,085 651,173
Receivable Turnover (TTM) 4.79 6.91 7.43
Inventory Turnover (TTM) 31.75 57.85
Asset Turnover (TTM) 0.39 0.53 0.89

Management Effectiveness

Company industry sector
Return on Assets (TTM) -7.23 12.07 9.01
Return on Assets – 5 Yr. Avg. 13.06 10.27
Return on Investment (TTM) -7.76 17.75 12.18
Return on Investment – 5 Yr. Avg. 18.02 13.94
Return on Equity (TTM) -10.74 20.91 10.13
Return on Equity – 5 Yr. Avg. 21.24 14.34

 

TWITTER INC closed up 1.070 at 16.430. Volume was 26% below average (neutral) and Bollinger Bands were 36% narrower than normal.

Open High Low Close Volume___
15.800 16.440 15.750 16.430 3,132,783

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 15.06 15.39 20.96
Volatility: 63 69 66
Volume: 4,063,786 4,393,360 3,872,384

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TWITTER INC gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

TWITTER INC is currently 21.6% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 8 periods.

Twitter, Inc. (Twitter), incorporated on April 19, 2007, offers products and services for users, advertisers, developers and platform and data partners. The Company’s service is live-live commentary, live connections, live conversations.

Products and Services for Users

The Company’s Products and Services for Users include Twitter, and Periscope and Vine. Its Twitter is a platform for public self-expression and conversation in real time. By developing a way for people to consume, create, distribute and discover content, Twitter helps users in content creation and distribution. The public nature of the Twitter platform allows it and others to extend the reach of Twitter content beyond its properties. Media outlets and its platform partners distribute Tweets beyond its properties. Its mobile application, Periscope, lets users to broadcast and watch video live with others. It allows to broadcast from a GoPro camera, and to watch any broadcast live from a Tweet. Pairing Periscope with Twitter gives broadcasters greater distribution and the ability to integrate into its revenue products. Vine is a mobile application that enables users to create and distribute short looping videos of approximately six seconds in length.

Products and Services for Advertisers

The Company’s promoted products enable its advertisers to promote their brands, products and services, and extend the conversation around their advertising campaigns. It enables advertisers to target an audience based on various factors, including a user’s Interest Graph. The Interest Graph maps, among other things, interests based on users followed and actions taken on its platform, such as Tweets created and engagement with Tweets. Its Promoted Products are incorporated into its platform as native advertising and are designed to be useful to its users as organic content on its platform. Its promoted products consist of promoted tweets, promoted accounts and promoted trends. Promoted tweets appear within a user’s timeline or search results. It has added product features to Promoted Tweets campaigns based on advertiser objectives, which may include Tweet engagements (such as retweets, replies and likes), application installs or engagements, Website clicks or conversions, or video views. Promoted accounts appear in the same format and place as accounts suggested by its Who to Follow recommendation engine, or in Tweets in a user’s timeline. Promoted accounts provide a way for its advertisers to build a community of users interested in their business, products or services. Promoted trends appear at the top of the list of trending topics for a day in a particular country or on a global basis. When a user clicks on a Promoted Trend, search results for that trend are shown in a timeline and a Promoted Tweet created by its advertisers is displayed to the user at the top of those search results. It features one promoted trend per day per geography.

Its technology platform and information database enables it to provide targeting services based on audience attributes, such as geography, interests, keyword, television conversation and devices for advertisers to promote their brands, products and services. Its platform also allows customers to advertise across the mobile ecosystem, both on Twitter’s owned and operated properties as well as off Twitter on third party publishers’ Websites, applications and other offerings, across the full user lifecycle-from acquiring new users to engaging existing users. It enables advertisers to extend their reach beyond Twitter through MoPub, which is its mobile-focused advertising exchange that combines advertisement serving, advertisement network mediation and a real-time bidding exchange into one monetization platform; Twitter Audience Platform, an advertising offering that enables advertisers to extend their advertising campaigns with Twitter Promoted Products to audiences off Twitter while retaining access to Twitter’s measurement, targeting and creative tools, and Performance marketing offering built upon TellApart technology, which provides retailers and e-commerce advertisers retargeting capabilities across desktop and mobile Web.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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