Sell or Short This Tech Stock Immediately

by Sam Collins | October 22, 2012 1:08 am

Cognex Corp. (NASDAQ:CGNX[1]) — This 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 and the company’s exposure to Europe.

Technically, CGNX 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 short it if you are a trader with a downside target of $30.

Short-selling is a high-risk, speculative technique, so a stop-loss order should be entered to protect against unlimited losses. Check with your broker for any margin requirements.

Trade of the Day – Cognex Corp. (NASDAQ:CGNX)
Click to Enlarge

Trade of the Day Chart Key

Endnotes:
  1. CGNX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CGNX

Source URL: http://investorplace.com/2012/10/trade-of-the-day-cognex-corp-nasdaq-cgnx-2/
Short URL: http://invstplc.com/1nxgwDp