Don't Ignore This Chart!

This Hot IPO is Poised to Trade Higher - Even After Gapping Up on Strong Earnings

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Bill.com (BILL) has been one of the better-performing IPOs to debut recently. The leading provider of cloud-based software that automates complex back-office financial operations popped more than 60% on its first day of trading two months ago.

Why all the hoopla? The company partners with 70 of the top 100 accounting firms in the U.S. as they target overlooked small and mid-sized companies. The pre-public numbers pointed to a company poised for growth, and this week's reported numbers did not disappoint, with Q4 revenues rising 50% year over year while their customer count grew 20%.

INTRADAY (60 MINUTE) CHART OF BILL.COM (BILL)

The stock gapped up over 20% on the news and, while most investors would think the stock's upside potential had been met, using an intraday (60-minute) chart would have helped to keep you in the stock, as it found support at its 5-hour simple moving average while the RSI and MACD remained positive.

BILL gained an additional 6% today following yesterday's bullish quarterly report and appears poised for further upside. I've marked up the characteristics of an uptrend reversal that occurred in late December, so you can be on the lookout for short-term sell signals when they arise.

And one more characteristic may be driving Bill.com higher - the company is viewed as a prime takeover target from one of its larger Fintech peers, which would help growth accelerate even faster.

For those who'd like to be alerted to additional high-growth stocks that are poised to outperform the markets and have an even longer history of growth, I urge you to trial my MEM Edge Report for a nominal fee. If you act now, you'll receive 4 weeks of this bi-weekly report, including this weeks's detailed version that not only provides insights into the broader markets, you'll receive information about each sector not seen anywhere else - all complete with buy and sell ideas.


Warmly,

Mary Ellen McGonagle,

MEM Investment Research

Mary Ellen McGonagle
About the author: is a professional investing consultant and the president of MEM Investment Research. After eight years of working on Wall Street, Ms. McGonagle left to become a skilled stock analyst, working with William O’Neill in identifying healthy stocks with potential to take off. She has worked with clients that span the globe, including big names like Fidelity Asset Management, Morgan Stanley, Merrill Lynch and Oppenheimer. Learn More
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