Newport Corp : Bullish trend is finish
Entry price | Target | Stop-loss | Potential |
---|
$12.52 |
$0 |
$13.2 |
+100% |
---|
Newport Corporation supplies advanced technology products and solutions for fields such as Research, Life & Health Science, Aerospace & Defense, Industrial Manufacturing, Semiconductors, and Microelectronics. The Company's products include lasers and light sources, optomechanical components and mounts, optical filters and gratings, spectroscopic, and photonic instruments.
The fundamentals remain very fragile. The security seems highly overvalued compared to other securities in its sector. In add analysts polled by Thomson Reuters have revised downward EPS for 2012 and 2013, respectively to $0.80 and $1.14.
Technically the share is in a bullish trend in the short term. This trend seems to be stopped by the short term resistance of USD 12.8. This level has been tested many times in the past months and represents the upper band of a range, within which the stock has fluctuate since May.
We advise a short position in the stock in order to take benefit from the bearish trend. We fix a first target on the short-term support at USD 11.7 and then USD 10.7. At the same time we suggest a stop loss at USD 13.2
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