In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:
PB, ADM, SCG, INCY,
KORS, MSB, BID, EXLP, CTRP, BRM
NEW BEARISH Plays
Sohu.com - SOHU - close: 46.09 change: -1.31
Stop Loss: 47.25
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
SOHU is a Chinese Internet company. Shares have been underperforming since they reported earnings in late April and management lowered their guidance. Now the stock is testing support in the $46-45 area. The 2011 low was $$45.40. I am suggesting a trigger to launch small bearish positions at $44.90.
I do consider this a more aggressive, higher-risk trade.
We want to keep our position small because the most recent data listed short interest at almost 34% of the small 29.75 million-share float. If triggered we'll use a stop loss at $47.25. Our target is $40.25.
FYI: The Point & Figure chart for SOHU is bearish with a $35.00 target.
Trigger @ $44.90
Suggested Position: short SOHU stock @ (trigger)
- or -
buy the Jun $42.50 PUT (SOHU1216R42.5) current ask $1.70
Entry on May xx at $ xx.xx
Earnings Date 07/30/12 (unconfirmed)
Average Daily Volume = 915 thousand
Listed on May 10, 2011