Stock to Sell #4 – General Dynamics Corp. (GD)
General Dynamics Corp. (NYSE:GD) is the world’s fifth largest military contractor and one of the key makers of small jets. Because of its dependence on government orders, GD has had its earnings and price objective regularly cut by analysts.
Technically it is attempting to consolidate at $62 after falling from a high of over $74 earlier this year. But a death cross in June and high-volume selling, which tests the support at $62, will likely give way to lower prices.
Investors should consider selling this stock and switching to better long-term prospects. Traders may want to sell GD short with a trading objective of $56. Short-sellers should check with their broker for special requirements and place a stop-loss order at 5% above their short-sale price in order to protect against unlimited losses.