Cloud Stock About to Descend Even Lower

by Sam Collins | June 4, 2013 1:55 am

Cloud Stock About to Descend Even Lower

VMware (VMW[1]) — This was on our list of Stocks to Sell in April[2], where I said: “Sell VMW short at $78 or higher with a target of $65. Stop-loss orders should be entered at $86.”

On April 22, the Trade of the Day[3] said, “Earnings are scheduled to be reported [April 23], and analysts are looking for $0.70 per share on revenues of $1.18 billion. A failure to meet this estimate could drive VMW much lower, but for those who shorted the stock, covering now for a small profit may be a wise decision.”

VMW failed again to meet analysts’ expectations, missing both its own sales forecast and analysts’ earnings estimates.

Since then, the stock has attempted to form a bottom at $70, but on Monday, broke a triple-bottom and appears headed to $60 or lower. Sell VMW short at $68 or higher with a stop-loss order at $75.

06 04 13 vmw 300x187 Cloud Stock About to Descend Even Lower
Click to Enlarge

chart key 300x84 Cloud Stock About to Descend Even Lower[4]

Endnotes:
  1. VMW: http://studio-5.financialcontent.com/investplace/quote?Symbol=VMW
  2. Stocks to Sell in April: http://investorplace.com/2013/04/stocks-to-sell-amx-bbry-dbd-nem-tdw-vwm/view-all/
  3. Trade of the Day: http://investorplace.com/2013/04/trade-of-the-day-vmware-nyse-vmw/
  4. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2013/06/trade-of-the-day-vmware-vmw/
Short URL: http://invstplc.com/1nzFBgY