Market Insight: Shutterfly Leading the Way in Personal Publishing

Shutterfly also offers canvas prints, keepsake boxes, desk organizers, multimedia DVD slideshows, magnets, coasters, tiled mugs, playing cards, puzzles, scrap booking supplies, and frames. In addition, the company produces customized children's books, including My Adventure on Sesame Street and My Amazing Alphabet Adventures, which enable children to ‘star' in their own stories by integrating the their picture into the book's illustrations and storyline. Shutterfly is headquartered in Redwood City, California.

The company recently announced a program with Martha Stewart Living Omnimedia, Incorporated to create a photo book and a suite of holiday Greeting Cards, designed by the Martha Stewart team for Shutterfly. Shutterfly believes this collaboration will continue to produce many opportunities for their customers to express themselves by creating unique, elegant and personal gifts.

The stock looks good from a fundamental perspective with great sales growth and strong earnings momentum. The latest earnings showed total revenues were $32.6 million, an increase of 54 percent over the third quarter in 2006. This represents the 27^th consecutive quarter of year-over-year revenue growth.

Technically, the stock looks good, trading well above its 200-day moving average and an Elliott Wave-4 buy formation forecasting gains into the $43 by the April 2008 timeframe. Shutterfly does have a very liquid options market that currently extend out to June of 2008. This allows the options strategist the opportunity to trade their favorite option strategy for this particular bullish opportunity.

Figure 1:  Elliott Wave-4 Buy Pattern for Shutterfly Incorporated
(Source: Profit Source)

Happy Trading.

Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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