Stock to Sell #1 – Baker Hughes Inc. (BHI)
Large-cap oil well services company Baker Hughes Inc. (NYSE:BHI) topped at $81 in July 2011. The Gulf oil spill in April 2010 resulted in a drilling moratorium, which had a negative impact on the company’s revenues and earnings. And even though the moratorium is now lifted, new permits have been slow in coming.
The stock fell to under $39 in June, but reversed and rallied to $51. But since then, the pattern has been bearish and the recent rally to its 200-day moving average failed at under $44.
Selling volume has been higher than buying volume, and the MACD internal indicator is arching down and could issue a sell signal soon. If you own BHI, sell it at the market. Short sellers should enter a stop-loss order at $44.50.