4 Stocks: 1 Hot, 3 Not
Chris Johnson and Jon Lewis, August 14, 2009
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GameStop (GME)
GameStop (GME) is a Wall Street favorite. How much do analysts love GME? How about all 13 covering brokerages rating the stock a "buy"? And 10 of those are "strong buys." It's hard to get any more bullish than that. The put/call ratio is within the lower 30% of all readings of the past year, signifying optimism among options players.
Technically, the shares have run into a wall at their 100-day and 200-day moving averages near the 25 level. Such resistance coupled with over-the-top optimism is a dangerous mixture that is best avoided or played on the downside. The company reports earnings on Aug. 20.
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We think the Street has it all backward when it comes to these four stocks. Find out how to position yourself on the right side of these trades.
