Stock to Sell #5 – Ultratech (UTEK)
Ultratech (UTEK) develops and manufactures laser thermal processing and inspection equipment. On June 4, with the stock near $37, I noted that analysts projected UTEK would underperform the market over the next 6-12 months.
Since then, the stock executed a second death cross and turned down from its bearish resistance line in July and October. MACD is overbought and the stock is in a bear market, so the recent reaction rally appears doomed to fail at its 50-day moving average above $26.
Sell UTEK at the market. Short sellers should enter a stop-loss order at $28.50.