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Wednesday, January 24, 2007

January 24th - DEO GPS

Cramer's next foreign pick (and I think his last?) was Diageo plc (DEO)

Closing Price: $78.90
After Hours High: $79.66
Percent Increase at High: 1.0%
After Hours Most Recent: $79.40
Percent Increase at Most Recent Price: 0.6%
Sector: Consumer Goods
Days to Cover: 1.2
Short %: 0.08 %
% Held by Insiders: 0.17 %
% Held by Institutions: 15.10 %
50 Day Moving Average: $77.37
200 Day Moving Average: $71.05
Average Price Drop for Sector: 4.8%

Expensive stock and the after hours price I think is reflective of that. Not to mention, the yesterday's pick (NTLI) opened lower this morning at the bell and dropped quickly, so I'm curious to see if this is going to be a new trend in this somewhat turbulent market.

Next Cramer recommended Gap Inc. (GPS)

Closing Price: $19.38
After Hours High: $20.05
Percent Increase at High: 3.5%
After Hours Most Recent: $19.96
Percent Increase at Most Recent Price: 3.0%
Sector: Services
Days to Cover: 3.4
Short %: 3.32 %
% Held by Insiders: %
% Held by Institutions: %
50 Day Moving Average: $19.66
200 Day Moving Average: $18.34
Average Price Drop for Sector: 2.8%

The stock is above its 200-day moving average and has passed its 50-day after the price increase tonight, which are both bullish signs. Also, for a stock that was hated not that long ago, the short percentage is pretty small. I had also just written a few sentences how the stock didn't break $20 after hours and I was going to look at that number tomorrow to see if it was broken tomorrow which may have meant a early run above that price tomorrow morning, but then Cramer near the end of the segment put a "25% gain in less than a year" number out there and the stock instantly went up above $20 and is now sitting just a bit below that. For a cheaper stock, I'm a little surprised this didn't blow right past $20 which makes me think it will have a hard time holding above it tomorrow, so a nice run up past $20 near the bell could be a good short entry point.

Comments on "January 24th - DEO GPS"

 

Blogger Unknown said ... (January 25, 2007 9:54 AM) : 

Darn!, I overslept the open on GPS. I planed to short this one...what a great short...darn time zones. Oh well on to tommorow.

 

Anonymous Anonymous said ... (January 25, 2007 12:59 PM) : 

Do you short pre market or at the open?

 

Blogger CramerTracker said ... (January 25, 2007 1:18 PM) : 

I normally short at or just after the open which is when there is normally a drop that is easiest to time. This of course has not been too great of a strategy for maximizing returns the last few picks as they have opened well below the after hours price levels.

 

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