Stock to Sell #6 – Sealed Air Corp. (SEE)
Container and packaging company Sealed Air Corp. (NYSE:SEE) missed its Q2 earnings estimate by a wide margin. Cost of sales increased by over 50% year-over-year, and marketing, administrative and development costs increased 157%.
Technically the stock broke down from a triangle in April, which triggered a death cross in May. From May to mid-July, SEE attempted to consolidate at just over $15, but the disastrous Q2 earnings miss drove it to under $12 in late July.
The stock may rally in an attempt to cover the open continuation gap from $15.77 to $14.23. A bounce could give sellers an opportunity to eliminate positions or enter short sales.