Stock to Sell #4 -ToyotaMotors (TM)
Toyota Motors’ (NYSE:TM) production problems related to natural catastrophes continue. Analysts look for earnings to be limited by margin pressures, customer quality concerns, and a stronger yen.
Although longer-term prospects may improve, the recent rally from under $65 to $85 provides shareholders an excellent opportunity to sell the stock. Technically a double-top has formed following a buying climax, and the MACD indicator recently flashed a sell signal.
The downside target for TM is under its 50-day and 200-day moving averages at $74. Investors could protect current positions by either selling calls or buying puts.