Invest With Companies Succeeding on the Road to Recovery

A company’s fortunes can ebb and flow. Changes in customer demand can lead to fat and lean years. Or a company can have to deal with ongoing obsolescence. A further category of companies can suffer from one-off events.

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  • How a company reacts from such an event can affect how that company recovers. And for many of today’s one-off issues, understanding the ongoing costs, if any, can also have a big impact.

    For instance, cybersecurity attacks are on the rise. That’s impacted some companies more than others. For consumer goods giant Clorox (CLX), last year’s cyberattack caused massive inventory disruptions.

    That issue appears to be clearing up quickly. The company has shown a strong recovery, and shares are on the mend.

    That’s pushing shares higher. However, Clorox is still down 5 percent over the past year.

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  • Action to take: Shares are in a strong uptrend, and the company’s latest update suggests further upsie ahead. Investors may like shares at current prices or on any down day in the coming weeks.

    At current prices, Clorox pays a 3.2 percent dividend.

    For traders, the April $165 calls, last trading for about $2.60, could see further upside in the months ahead. The options could potentially see mid-to-high double-digit returns in the months ahead.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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