Stock to Sell #4 – McDermott International (MDR)
Engineering, construction and procurement company McDermott International (NYSE:MDR) focuses on designing complex offshore oil and gas projects. But its execution has been weak and earnings have declined in the past five quarters.
MDR is down 38% in the past year, but up 15% in the last month. Technically it closed a gap opened in October as huge selling dropped it to its low of the year. A rebound that closes such a gap is not unusual and is an excellent opportunity to unload this non-performer.
Note its overbought stochastic and that it is approaching a significant area of resistance between $13 and $15. Sell MDR at market.