Stock to Sell #5 – LG Display Co. (LPL)
Korea-based LG Display Co. (NYSE:LPL) makes thin-film transistor LCD panels, which are used in TVs, laptops and desktop monitors. LG recently committed to a huge expansion in an attempt to gain market share from Samsung, Sony (NYSE:SNE) and other Japanese manufacturers. But there are indications that the TV market is saturated and growth in other areas, like cell phone displays, carries a lower profit margin.
The stock broke its major uptrend line in December, gapping from $14.50 to $13.50, then recovered only to gap down again from the recently penetrated uptrend line and 20-day moving average. The next support is at the December low of $13.57 and then the October low at $11.78, which is the short-term short sale trading target.