NEW BEARISH Plays
Voxeljet AG - VJET - close: 31.90 change: -2.13
Stop Loss: 34.35
Current Gain/Loss: unopened
Entry on February -- at $--.--
Listed on February 05, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 805 thousand
New Positions: Yes, see below
Why We Like It:
VJET is part of the 3D printing industry. This particular company is based in Germany. The 3D printing stocks were hot commodities in 2013. The group appears to have peaked in early January this year. Most of the major players are all down significantly from their 2014 highs.
A rival company, 3-D Systems (symbol: DDD), shocked the market today by issuing an earnings warning this morning. DDD's stock was down more than -20% at its worst levels of the day before paring its loss to -15.3%. Shares of VJET spiked lower as well and briefly traded under the $30.00 level before trimming its losses to -6.25%.
We suspect this weakness in the group picks up speed. Once VJET had come close to filling the gap today the stock revered lower again.
Investors should note that this is an aggressive, higher-risk trade. There are already a lot of bears in this stock. The most recent data listed short interest in VJET at 2.39 million shares of the very, very small 4.27 million float. That's more than 55% of the float. Any good news could spark a very sharp pop in VJET. Therefore investors will want to strongly consider limiting their risk by trading with put options.
We're suggesting small bearish positions now at current levels. Broken support near $34.00 could be resistance so we'll start with a stop loss at $34.35. Our target is $25.25.
FYI: The Point & Figure chart for VJET is bearish with a $13.00 target.
*Small Positions to Limit Risk!*
Suggested Position: short VJET stock @ (the opening bell)
- (or for more adventurous traders, try this option) -
Buy the MAR $30 PUT (VJET1422o30) current ask $3.20