Whirlpool
Based upon the warnings of Sears and Home Depot, I am concerned about downside risk in Whirlpool. It took a pretty big 4% hit yesterday, but I am not seeing support until about $94 per share. One of the problems with a stock like WHR is that its narrow product lines (appliances) and lack of publicly traded competitors forces an all or nothing approach. With concerns about both new home construction and weak appliance sales at retailers like Sears, investors are often inclined to sell now and find out the specifics later. Given the 25% rise since April, you have the added temptation of profit taking. I never recommend selling or buying at HEDGEfolios since I have no idea who you are, but my focus is on risk / reward tradeoffs, probabilities and likely directional moves. All those factors are very negative on WHR right now. Note that I have had a DOWN signal on WHR since May 29, 2007 at a price of $111.74.

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