by Sam Collins | September 26, 2012 1:51 am
Cognex Corp. (NASDAQ:CGNX) — This company produces machine vision products that capture and analyze visual information to automate tasks primarily in manufacturing processes.
CGNX was on our list of Stocks to Sell in September when it was trading at $36 with a target of $30. At that time, I wrote: “[Cognex] is estimating that earnings for 2012 will fall to $1.55 from $1.63 last year. Analysts have recently reduced their targets and earnings estimates due to the continuing global economic slowdown.
“Technically the stock bounced from about $30 in July to over $36 where it turned back from its 200-day moving average. Sell CGNX if you own it and sell it short if you are a trader. The downside trading target is $30.”
On Tuesday, Piper Jaffray downgraded the stock with a target of $27. This reinforces that CGNX should remain on our short-sale list and any recovery should be used as a shorting opportunity. Our downside target remains at $30.
Short-selling is a speculative, high-risk technique, so a stop-loss order should be entered to protect against unlimited losses. Check with your broker for any margin requirements.
Source URL: https://investorplace.com/2012/09/trade-of-the-day-cognex-corp-nasdaq-cgnx/
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