Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
None ASVI

New Long Plays

None today.
 

New Short Plays

A.S.V.Inc. - ASVI - close: 34.18 change: -0.86 stop: 35.31

Company Description:
ASV designs, manufactures and sells rubber-tracked, all-purpose crawlers and related accessories, attachments and traction products. ASV also manufactures rubber-tracked undercarriages, some of which are a primary component on Caterpillar's Multi Terrain Loaders. With its patented undercarriage technology, ASV leads all rubber-tracked, all-purpose crawlers in technology and innovation. ASV's products are able to traverse nearly any terrain with minimal damage to the ground, making it effective in industries such as construction, landscaping and agriculture. (source: company press release)

Why We Like It:
Wow! Investors do not seem to care that ASVI's latest earnings report turned in record numbers. The company beat estimates by 7 cents and raised its 2005 guidance. Yet ever since its earnings the stock has been in decline on above average volume. This weakness has brought ASVI below multi-month support in the $36-37 level and now its Point & Figure chart shows a quadruple bottom breakdown sell signal with a $25.00 target. Today's session produced a 2.4 percent drop but it also produced a bearish engulfing candlestick pattern. This looks like a new bearish entry point following the recent oversold bounce produced early this week. Given the bearish outlook we would consider shorting the stock here, however, we are suggesting that readers use a trigger at $33.99 just to confirm ASVI's direction. Our six-to-eight week target will be the $30.50-30.00 range.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/28/05 (confirmed)
Average Daily Volume: 122 thousand
 

Premier Investor New Play Archives