Stock to Sell #4 – QLogic Corp. (QLGC)
QLogic Corp. (NASDAQ:QLGC) designs and supplies network infrastructure products that provide and manage computer data communications. Last year, earnings fell in three of the four quarters versus 2011, and analysts estimate 2013 and 2014 will bring further declines.
Technically, QLGC is in a bear market with resistance at its bearish resistance line at $11.50. In March, it failed to penetrate resistance, and in early May, it broke through its bearish support line at $10, confirming that a solid decline is intact. Sell QLGC at the market or sell it short with a price objective of $8.