Svelte's Sunday Shorts: Part III
Here ar a few more "fundamental" shorts that I am looking at, although they all have bad technicals as well.
POT Potash Corp. is the world's largest potash company, the second largest nitrogen producer, and the third largest phosphate producer. What do these three products have in common? They are all basic commodity chemical products. If world economies turn down, these deep cyclcicals will not be spared. On 8/10, EPS estimates were again downgraded -- the third time in the last three months. It has a Zack's rating of "sell." On 8/14, POT reached a 52 week low. IBD's RS index is 32 and accum/dist is rated D. Most technical indicators are bearish, but the stock is oversold.
207.95.154.130
Another stock in a similar industry is Rohm & Haas (ROH). Down big on Friday in sympathy with DD. Although ROH positions themselves as a "specialty" chemical producer, they are vulnerable. Other candidates include DOW and ICI.
207.95.154.130
A final consideration is SCI - SCI Systems is a manufacturer of electronic equipment for computer, aerospace, and telecommunications industries. On 8/14, earnings estimates for 9/98 were again downgraded. Zacks ranking is a "strong sell." Analysts recommendations have been reduced in the last month.
207.95.154.130
If the market starts to tank and the Asia contagion grows more heavy, you could do worse than looking a the big money market banks such as CCI, JPM, and BT. JPM has takeover speculation, so one must be careful.
Another standard disclaimer -- I am recommending no buys, sells, or even trades!! |
