NEW BEARISH Plays

Universal Display Corp. - PANL - close: 27.09 change: -0.78

Stop Loss: 28.35
Target(s): 22.50
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 12, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 727 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
PANL makes organic light emitting diode (OLED) technology and flat panel displays. The stock appears to be in a long-term decline from its 2011 highs. Shares displayed relative weakness today (-2.7%) and broke down under key support.

I do consider this a higher-risk, more aggressive trade. First of all shares of PANL can be very volatile. The last few months have been very choppy. Second, the most recent data listed short interest at 34.8% of the small 35.7 million share float. That does raise the risk of a short squeeze (and helps explain some of the volatility). You may want to try and limit your risk by buying put options instead of shorting the stock.

Today's low was $26.80. I am suggesting a trigger to open bearish positions at $26.70. If triggered our target is $22.50. FYI: The Point & Figure chart for PANL is bearish with a $22.00 target.

Trigger @ 26.70

Suggested Position: short PANL stock @ (trigger)

- (or for more adventurous traders, try this option) -

Buy the Jul $25 PUT (PANL1320s25) current ask $0.90

Annotated chart:



Sinclair Broadcast Group - SBGI - close: 24.09 change: -0.94

Stop Loss: 25.51
Target(s): 20.15
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 12, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
SBGI is a television broadcasting company with 86 stations in 46 markets. The stock has seen a rocket-like rise this year, more than doubling at its best levels. Yet it looks like the rally has run its course. SBGI is now breaking down below support levels and failing at resistance. We think the correction lower continues.

The recent low was $23.88. I am suggesting a trigger to launch bearish positions at $23.75. If triggered our target is $20.15. FYI: The Point & Figure chart for SBGI is bearish with an $18 target.

Trigger @ 23.75

Suggested Position: short SBGI stock @ (trigger)

Annotated chart: