Stock to Sell #1 – Dresser-Rand (DRC)
On Oct. 31, petrochemical equipment maker Dresser-Rand (DRC) reported Q3 revenues of $633.9 million, which were short of the $829.7 million consensus estimate. Earnings came in at $0.64 per share, up from $0.54 in the same quarter last year.
Following the news, DRC broke sharply to the downside, leaving a breakaway gap from $60.73 to $58.97 in its wake. And it was the highest volume day for the stock in over a year.
Even though there could be a reflex rally, it appears that the back of its bull trend has been broken, and so it should be sold. The next support is at the triple-bottoms of last year at about $50.