Stock to Sell #1 – Cognex Corp. (CGNX)
Cognex Corp. (NASDAQ:CGNX), a producer of machine vision products that capture and analyze visual information to automate tasks primarily in manufacturing processes, is estimating that earnings for 2012 will fall to $1.55 from $1.63 last year. Analysts have recently reduced their targets and earnings estimates due to the continuing global economic slowdown.
Technically the stock bounced from about $30 in July to over $36 where it turned back from its 200-day moving average. Sell CGNX if you own it and sell it short if you are a trader. The downside trading target is $30.
Short-selling is a high-risk, speculative technique, so a stop-loss order should be used. And check with your broker for any special margin requirements.