3 Stocks to add to your Short List
They are AOL, Domino's Pizza (DPZ), and Under Armour (UA).
Let's kick it off with AOL.
Shares of AOL have been trading in a channel upwards since last September, culminating in a huge gap up when they sold $1B in patents to Microsoft back in April. The stock is still hanging in there technically, however, it's trading near all time highs, it has a huge P/E ratio of 85, with a forward P/E of 32. We think AOL is overvalued here and if it falls below it's 20 day MA at $26, it could easily break through the 50 day at $24 and fall all the way to $20, where it's valuation is a little more acceptable. The short float percentage is 12.5% right now and we expect that to increase with the current softness in the market.
Next up, Domino's Pizza (DPZ). A lot of damage has been done to DPZ's chart technically since Mid-March. Price is currently bumping into it's 200 day SMA on the downside for the second time in recent weeks. Looking for a breakdown here with a target of $22.50.
And lastly, this is playing with fire, but Under Armour (UA) looks toppy here. Shares are up 30% for the year and trading at all time highs. In spite of that, shares have been making lower lows since what looks like a double-top registered on 04/20 and 05/02. If shares break down below $90 we think it could fall to $85-$80 before stabilizing, at that point we'd look to go long the name.
Looking for more short ideas? Check out our thoughts last week on Garmin (GRMN), Coinstar (CSTR) and Boston Beer Co. (SAM).
Best of the Blogs
Scanning and identifying the best blog entries every hour
- "Too Simple" Energy-Economy Models Give Misleading Answers | ZeroHedge
- Why We're Ungovernable: Debt & The Sudden Outbreak Of Utter Insanity | ZeroHedge
- Signs of Excessive Bullish Sentiment | Financial Sense
- US Services Economy 'Bounce' Dies - PMI Tumbles To 5-Month Lows | ZeroHedge
- Why Swap Spreads Are Suddenly Blowing Out And Why This Is Good For Treasuries | ZeroHedge
- Tuesday Humor: Richmond Fed Survey Beats Expectations By 7 Standard Deviations | ZeroHedge
- Oil Extends Losses After Surprisingly Large Cushing Build | ZeroHedge
The most relevant financial news and articles from the Internets
- Russia's capital now has its own... | Business Insider
- David Einhorn is up against the short seller who brought down Valeant | Business Insider
- Here's why you should spend 5 minutes in total silence every morning | Business Insider
- Marine Corps F-35s will go head-to-head with F-18s, F-22s, F-16s, and more at Red... | Business Insider
- Donald Trump scores post-convention bump in polls, takes lead over Hillary Clinton | Business Insider
- 7 items all flight attendants carry in their bags | Business Insider
- China: South Korea should think twice about the deployment of America's... | Business Insider