Sell: Coupa Software Incorporated (COUP)
From Cabot Growth Investor
Updated from Wall Street’s Best Investments 819, July 10, 2019
Last night, we decided to hold our shares of Coupa Software (COUP) despite this week’s ugly slide, as the stock was still within its consolidation area of the past few months—though we also hiked our mental stop given the funky action. And this morning, instead of finding support, COUP is again down on another round of heavy volume.
After a sharp drop, a bounce is always possible, but the combination of the sector’s weakness following a huge, prolonged run, COUP’s failed breakout and the outsized selling volume this week tells us a more meaningful top is possibly in place. At the very least, the stock doesn’t appear like it will be ready to lead any market advance that gets going.
Beyond that, the simple fact is that COUP is violating our stop this morning—thus, we’re going to take the rest of our profit here.
Michael Cintolo, Cabot Top Ten Trader,www.cabotwealth.com, 978-745-5532, October 18, 2019