by Sam Collins | December 27, 2012 1:21 am
Avnet (NYSE: AVT) — This is one of the largest manufacturers of computer components in the world. Sales of computers have been slow, and next year, semiconductor and electronic component makers are expected to have a difficult time as the emphasis shifts to the cloud and away from manufacturers like Avnet.
Both revenue and earnings are expected to fall. S&P estimates earnings of $3.29 in fiscal year 2013 (ended in June) versus $4.06 last year.
The stock has been in a steady decline since early this year when it topped at over $37 in March. Currently, it is in a clearly visible bear channel with the top of the channel at its bearish resistance line and 200-day moving average — both at just under $32. The stochastic flashed a sell last week.
The downside trading target is $26, but long-term holders should consider selling the stock since it is in a bear market with no support in sight. Short sellers should use stop-loss orders to protect against unlimited losses. Also, check with your broker for any unusual margin requirement and the ability to borrow the stock.
Source URL: http://investorplace.com/2012/12/trade-of-the-day-avnet-nyse-avt/
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