by Sam Collins | November 12, 2012 1:18 am
Cognex Corp. (NASDAQ:CGNX) — This company provides machine vision products that capture and analyze visual information to automate tasks primarily in manufacturing processes.
It is estimating that its 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, the stock bounced from about $30 in July to over $36, where it turned back from its 50-day and 200-day moving averages. A new breakdown from support occurred last week.
Sell CGNX if you own it and sell it short if you are a trader. The downside target is $28. Short selling is a speculative, high-risk technique, so a stop-loss order should be entered to protect against unlimited losses. And check with your broker for any margin requirements.
Source URL: http://investorplace.com/2012/11/trade-of-the-day-cognex-corp-nasdaq-cgnx-3/
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