three short candidates

Discussion in 'Stocks' started by billyjoerob, Jan 3, 2012.

  1. KMP - tax gain sellers will sell in the new year after deferring their gains. Chart has some dark cloud cover.

    SXC - 79% of the shares are getting dumped on the market in two weeks as shares are distributed to holders of SUN. Should trade down a couple of bucks.

    NAVR - a distributor with no cash. In the terminal "bits in boxes" business (ie shipping software to retail stores). Short to 50c (stock may be too small to short tho).
  2. KMP is not a good short. it will go though 100+ easily.

    sxc and navr is no brain short candidate.

  3. You're right, I wouldn't short KMP. Some cheap puts would give you a nice payoff if the trendline breaks.
  4. nitro


  5. That settles it then.
  6. re KMP/KMR - these are sister stocks. KMP *always* follows KMR intraday. So if you see KMR down and KMP up, KMP will follow KMR, and vice versa. I've followed this stock for a long time, this rule works almost invariably. I think the reason is that KMP has long term buyer/sellers and KMR (an equity, unlike KMP, which has different tax status) has savvier buyers/sellers.
  7. Today KMP was up while KMR collapsed late in the day. Look for KMP to follow KMR tomorrow. Two high-volume dojis in a row don't bode well for KMP/R.