NEW BEARISH Plays

Compa - BVN - close: 13.47 change: -0.57

Stop Loss: 14.41
Target(s): 10.25
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 18, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.3 million
New Positions: Yes, see below

Company Description

Why We Like It:
Compania de Minas Buenaventura S.A.A. is a mining company based in Peru. BVN produces mostly precious metals (gold, silver) but also mines copper, lead and zinc. Thanks to a rising dollar and falling gold and silver prices, shares of BVN are in a serious down trend. The stock has fallen to multi-year lows.

BVN produced an oversold bounce in late June but the rebound failed near its 10-dma. Now, just over two weeks later, BVN is poised to breakdown to new lows again. Today's low was $13.33. I am suggesting a trigger to open bearish positions at $13.25. If triggered our target is $10.25.

NOTE: If stocks see some profit taking tomorrow then gold and silver might bounce. I suspect this would be temporary. Investors should also note that I can't find an earnings date for BVN. We do not like to hold over an earnings announcement so not knowing when BVN reports next does raise the risk here.

Trigger @ 13.25

Suggested Position: short BVN stock @ (trigger)

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

Buy the Aug $13 PUT (BVN1317T13) current ask $0.55

Annotated chart: