NEW BEARISH Plays

Coherent Inc. - COHR - close: 44.14 change: -1.31

Stop Loss: 46.25
Target(s): 40.50
Current Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
COHR is in the scientific and technical instrument making business. After a brief pause sideways last week the stock has resumed its bearish trend. COHR just broke down to a new relative low today.

I am suggesting small bearish positions at the open tomorrow. We'll use a stop loss at $46.25. Our exit target is $40.50 since the $40.00 level should be support.

(small positions)

Suggested Position: short COHR stock @ (the open)

Annotated chart:

Entry on June xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 127 thousand
Listed on May 31, 2011


Schnitzer Steel - SCHN - close: 26.08 change: -1.28

Stop Loss: 27.25
Target(s): 21.50
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Steel and resource names are underperforming. Shares of SCHN look poised to break down from its two-week sideways consolidation in the $26-28 area. The May 18th low was $25.59. I am suggesting a trigger to launch small bearish positions at $25.45. If triggered our target is $21.50. We want to keep our position size small.

Trigger @ 25.45 (small positions)

Suggested Position: short SCHN stock @ (trigger)

- or -

buy the Jul $25 PUT (SCHN1221S25) current ask $1.80

Annotated chart:

Entry on June xx at $ xx.xx
Earnings Date 06/28/12 (unconfirmed)
Average Daily Volume = 474 thousand
Listed on May 31, 2011