Thursday, May 31, 2012

SSYS is a prime candidate for short sellers or those who wish to nail down a profit

Stratasys Inc. (NASDAQ:SSYS) — This maker of 3D printers and production systems for office-based rapid prototyping and direct digital manufacturing markets has had several upgrades by analysts since reporting Q1 revenues that were up 30% from last year. It was an impressive first quarter, but only equal to Zacks’s estimates, and it was noted that the company’s high-cost business model could run into stiff competition.

The stock jumped close to $55 on the news, but it had traded at $55 late in April 2011 before descending to $18 in October.

The long-term chart of SSYS looks like it has double-topped at $55, and so it is a candidate for short sellers or those who wish to nail down a profit. Note the gap at $36 to $40, which could close rapidly on a move under $47. The stochastic sell signal and the decreasing volume are also technical negatives.

Check with your broker for special rules regarding short selling and always protect against an unlimited loss by entering a stop-loss order.

Trade of the Day – Stratasys Inc. (NASDAQ:SSYS)

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