Stock to Sell #4 – Emerson Electric Co. (EMR)
Scientific and technical instruments designer and manufacturer Emerson Electric Co. (NYSE:EMR) issued fiscal Q2 results that widely missed analysts’ targets. Weak economic conditions in China and Europe were blamed for the miss. Analysts have lowered their projections for 2012 and 2013.
Technically EMR broke down from a double-bottom with a gap on huge downside volume. Support exists in the low $40s and that is our target for a short sale. Stop-loss orders should be entered at $50.
As with all short sales, be sure to check with your broker for the ability to borrow the stock. Short-selling is a speculative technique that involves higher-than-normal risk.