Svelte's Sunday Shorts: Part I
I have two sets of short candidates that I'm looking at, the first set in this post are shorts based primarily on recent price-volume movements as opposed to fundamental considerations. I'll have some "fundamentally challenged" shorts in Part II.
AFS Associates First Capital Corp. is the #1 consumer finance company in the US involved with home, auto, and personal loans. They are also one of the largest credit card issuers in the US. Friday AFS was down 3 3/4(-5%) on 1.2mil shares traded breaking down thru a double bottom. On 8/11, AFS went under its 200 day MA. The stock is under distribution - it has a D rating by IBD. Recent negative reaction by the market may be due to AFS's intent to purchase AVCO Finance. Regardless, the chart looks ugly.
207.95.154.130
VAL Valspar Corp. is a manufacturer of paints, stains, and varnishes, for construction, home improvement, and automotive uses. On Friday the stock was down 2 13/16 on over 3X normal volume. A news release by the company on 8/13 indicated sales softened in July and warned fiscal 1998 earnings may fall short of estimates. VAL's 10, 20 and 50 day MAs are all down and the stock is under distribution. I look for the weakness in the price to persist.
207.95.154.130
Several other stocks that experienced technical problems Friday are:
MTG & CMT (both mortgage insurers off 5 pts each), PLAT (down for two days after being cut); SYK (down 5 after announcing intent to buy an orthopedic manufacturing unit from PFE) and CMVT (discussed earlier).
Standard disclaimer -- this is NOT a recommendation to buy, sell, or trade!! |
