NEW BEARISH Plays

AZZ Inc. - AZZ - close: 35.31 change: -0.43

Stop Loss: 36.25
Target(s): 30.50
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 09, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 231 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
AZZ is in the industrial goods sector. They manufacture electrical equipment and other components. The stock produced an impressive performance in 2012 and the first quarter of 2013. The stock peaked in March and spent almost the entire second quarter consolidating sideways. AZZ reported earnings on June 28th and missed estimates. If that wasn't bad enough they also guided lower and announced their CEO was retiring.

AZZ has tried to bounce from support near the $35.00 level but it looks like the oversold bounce has failed. A breakdown under $35 could signal a drop to the next major support level near $30.

I am suggesting a trigger to open bearish positions at $34.75. If triggered our target is $30.50.

FYI: AZZ will begin trading ex-dividend on July 10th. The quarterly dividend should be 14 cents.

Trigger @ 34.75

Suggested Position: short AZZ stock @ (trigger)

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

buy the Aug $35 PUT (AZZ1317T35) current ask $1.45

Annotated chart: