Editor's Note:

In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:

(bearish ideas) NAV, EXP, PFCB, NILE, QSII, STLD


NEW BEARISH Plays

Consolidated Graphics - CGX - close: 41.31 change: -0.93

Stop Loss: 43.05
Target(s): 36.50
Current Gain/Loss: unopened
Time Frame: up to its early May earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
CGX is a commercial printer. News out this morning that the company was launching a joint venture with a partner in Japan did not have a positive reaction. The stock underperformed the market with a -2.2% decline and volume was more than double the norm.

The intraday low today was $41.00. I am suggesting a trigger to launch small bearish positions at $40.85. We'll start with a stop at $43.05. Our downside target is $36.50 but we may have to exit early ahead of the early May earnings report. FYI: The Point & Figure chart for CGX is bearish with a $28.00 target.

Trigger @ 40.85 (small positions)

Suggested Position: short CGX stock @ (trigger)

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/01/12 (unconfirmed)
Average Daily Volume = 45 thousand
Listed on April 19, 2011