Stock to Sell #4 – Federal-Mogul Corp. (FDML)
Federal-Mogul Corp. (NASDAQ:FDML), a major supplier of parts, components, modules and systems to auto, engine, marine, railroad and other heavy industries, posted an earnings loss of 91 cents in 2011 versus a profit of $1.62 in 2010.
On a recent rally, FDML failed to hold above its 50-day and 200-day moving averages as huge selling drove the stock back into a bear market. And even though the stochastic is oversold, it could remain so for an indefinite period. Sell FDML at the market.