Additional Trading Ideas:
In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these may need to see a break past key support or resistance:
MNRO, ACHC, IART, CSII, BMA, FCN, CNS, YHOO
NEW BEARISH Plays
Atlas Air Worldwide - AAWW - close: 36.43 change: -0.89
Stop Loss: 38.05
Current Gain/Loss: unopened
Entry on November -- at $--.--
Listed on November 20, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 500 thousand
New Positions: Yes, see below
Why We Like It:
AAWW is in the services sector. The company provides outsourced aircraft and aviation solutions including air freight. Atlas Air Worldwide is the parent company of Atlas Air, Inc. (Atlas) and Titan Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar). Through Atlas and Polar, Atlas Air Worldwide operates the world's largest fleet of Boeing 747 freighter aircraft. (source: website)
If you look at AAWW's chart the first thing you might notice is the huge drop in late October. Shares collapsed from almost 52-week highs near $50 to under $38.00 after management issued an earnings warning. Wall Street estimates were at $1.37 a share and AAWW lowered their Q3 estimates to $1.13. Management said that demand for air freight was a lot weaker than expected.
The stock produced a brief dead-cat bounce and then spent the last two and a half weeks drifting sideways. The last couple of days has seen a new influx of selling pressure. Today saw AAWW breakdown to a new two-year low. The next level of support appears to be the $30 area.
I am suggesting a trigger to launch bearish positions at $36.00. If triggered our target is $31.00. More aggressive investors may want to aim lower since the
Point & Figure chart for AAWW is bearish with a $23.00 target.
Trigger @ $36.00
Suggested Position: short AAWW stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the 2014 Feb $35 PUT (AAWW1422n35) current ask $1.95