Each week Trifecta Stocks identifies names that look bearish and may present interesting investing opportunities on the short side.
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet's Quant Ratings, we zero in on five names.
While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.
Heska Corp.
Heska Corp. (HSKA) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
The maker of veterinary diagnostic products is another stock in a miserable downtrend. The chart is ugly at best, with money flow in bearish territory and the Relative Strength Index (RSI) bending lower at a steep slope.
Heska is below all the relevant moving averages, too. There is just nothing good about this chart right now.
We could see a bump up to $140 or so, but that would be a sign to short even more. Target the $115 area.
BlackLine
BlackLine Inc. (BL) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
The provider of financial accounting close software is in a nasty downtrend with lower highs and lower lows. The stock has been punished and the recent gap down was after a brief rally up, which created a bearish flag formation.
Money flow has been bearish for weeks while the cloud is red. Bears have been beating up on this stock, no mercy on it. Even a recent pull-up into the gap would be a nice spot to enter a short.
Place a stop at $90, target the $65 area.
This commentary is an excerpt from "5 Bearish Bets" a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
Want to find out the other stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get "Bearish Bets" each week!
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
