It’s Time to Abandon This Sinking Stock

Since a buying climax in late May, Tidewater has traced a bear channel

   
It’s Time to Abandon This Sinking Stock

Tidewater (TDW) — Although this company operates the largest fleet of offshore supply vessels serving the international energy industry, analysts consider its shares to be overvalued compared to its peers. This is due to Tidewater’s emphasis on foreign markets where the risks are much greater than in North America.

Although recent quarterly earnings were slightly higher than expected, analysts say that it was due to deferred expenses that will catch up with the company in the next quarter. S&P reviewed the stock recently and reiterated its “sell” rating, saying it was “overvalued on all valuation metrics we use.”

The stock ran to a high of $61.65 on May 21. But that high appears to have been a buying climax (note the high volume), and since then, it has traced a bear channel with a high of $58 and low under $54. Sell TDW short at $57 or higher for a target of $50.

07 02 13 tdw 300x187 Its Time to Abandon This Sinking Stock
Click to Enlarge

chart key 300x84 Its Time to Abandon This Sinking Stock


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/trade-of-the-day-tidewater-tdw-2/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.