Trade Idea – Equifax

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Let me draw your attention to a recent corporate story caused by a massive data breach which easily can be a decent case study for business schools and tech universities as well. Equifax is a consumer data reporting agency aggregating info about more than 800 million individual and over 80 million businesses globally.

In September 2017, the company announced a cyber-security breach between May and July 2017, where cybercriminals gained access to appr. 140 million U.S. Equifax consumers’ personal data.┬áThis hack was one of the largest and most descructive data breach in world history. Needless to say, the recent sale of appr. 2 million stock by top executives didn’t help to handle the situation and might easily be the of the most disadvantageous timing of an insider activity ever occured.

Despite these numerous drawbacks the company’s cash rich profile with stable historical growth still offers a good entry point with high risk. On 15 September 2017 long position has been opened at USD 91.4.

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Trade Idea – Apple

Long position in Apple (ISIN: US0378331005) opened on 6 May 2016 at USD 92.51.

 

Key investment considerations:

  • RSI showed that the stock might be oversold, during the recent period appr. USD 200 bn value decreased from its record high market cap (due to the lower than expected sales numbers)
  • Majority of the analysts maintained buy recommendation
  • The more than USD 200 bn cash and cash equivalent amount offers a solid basis for new innovative solutions
  • Active M&A strategy
  • Probably less impressive short term outlook with good long term potentials