Bankrate Inc : Strong downward movement
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$11.05 | $0 | $11.8 | +100% |
The fundamental situation of the company remains fragile. Currently, the company is trading 2.62 times its sales, and the PER for this year is 93.17x. This is a significant valuation for the group. Moreover, analysts from Thomson Reuters revised downwards their EPS estimates for 2013.
Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the USD 10.2 support, a level that will represent the first target.
Investors could take a short position to target the USD 10.2 area. A stop loss is placed above the USD 11.7 resistance, threshold that would invalidate the bearish strategy.