VistaPrint Limited ( VPRT ) is the leading online supplier of high-quality graphic design services. VistaPrint’s online store offers personalized Christmas cards, calendars and postcards; all great potential Christmas gift items. Also, the company announced, in a November 20, 2006 press release, it will offer last minute shoppers a quick turn around of three days for holiday orders.
Investors should be pleased with VistaPrint as third quarter revenues increased 73% to $50 million. The company processed around 16,000 orders per day; this is up 60% from one year ago. The third quarter marks VistaPrint’s 25th consecutive quarter of sequential growth. The company’s net third quarter income rose to $6 million, or $0.14 per share, from $2.9 million and $0.04 per share one year ago.
Vista Print supplies customers with a myriad of online tools to help create high-quality products. The development of these tools requires a significant amount of technology and innovation. On average, the company files for a patent every month. Something else potentially bolstering VistaPrint’s sales are reports of a robust Christmas shopping season.
According to a Boston Herald report, “The nation’s retailers had a strong start to the holiday shopping season… Total sales rose 6 percent to $8.96 billion on Friday compared with the same day a year ago.” The story goes on to announce Wal-Mart, whose woes have been widely publicized, did not have an exceptionally strong day ( bostonherald.com ).
VistaPrint’s offers free graphic designs, content suggestions, logo design services, design templates, andapproximately 70,000 photographs and illustrations. The company claims it has received orders from over 7,000,000 customers since it was founded in 1995. VistaPrint Limited is based in Hamilton, Bermuda.
It would be interesting to consider a bullish look at covered calls for this company for the month of December. If you would like more information on a covered call investment strategy, take a look at the covered call example on PowerOptions’ website.
| DEC $35 Covered Call for VistaPrint Ltd. (VPRT) $ 34.70 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPTION | Expiration &Strike |
Opt. Bid |
%Dnsd. Prot |
%If Unch. |
%If Asgnd |
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| QPYLG | 06 DEC 35.00 | $1.10 | 3.20% | 3.30% | 4.20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Considering the time to expiration, roughly 20 days, the trade offers good downside protection of 3.2% and a healthy potential profit of 3.3% if the stock price remains unchanged and a potential profit of 4.2% if the stock price increases and is assigned.
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[tags]Christmas, Boston Herald, VPRT, VistaPrint Ltd., covered call example, covered call investment strategy, investment strategy, iron condor, option income, poweroptions, selling naked puts, stock option trading, stock options[/tags]