Beazer (BZH) Is Ripe for a Short

This stock has broken down ... and it's headed lower

   

Beazer (BZH) Is Ripe for a Short

Homebuilder Beazer Homes (BZH) widely missed its earnings forecast on Friday (despite being recommended as a “Buy” by Standard & Poor’s). Beazer reported a 6.6% drop in new-home orders vs. one analyst’s estimate of a 7.5% increase. And Beazer reported a loss of 47 cents a share.

Technically the stock had been consolidating at just over $18 for more than a year. But last week’s earnings and sales failures plunged the stock through support, and BZH fell to a low of $15.27 before bouncing $0.91 on Friday. Technically BZH has broken down, and so it should be sold.

bzh sell short e1407115207642 Beazer (BZH) Is Ripe for a Short

Traders may wish to consider BZH a short sale at $17 with a target of $12.50. A stop-loss order should be placed at $18.50. Short-selling is a speculative technique that is suitable only for those who qualify. Please consult with your broker as to the ability to borrow shares and any special margin or other requirements.

chart key Beazer (BZH) Is Ripe for a Short


Article printed from InvestorPlace Media, http://investorplace.com/2014/08/short-beazer-bzh/.

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