Monthly Archives: May 2012

In the News: May 27, 2012

Why Intel Deserves Another Look at Barron’s

GMCR Director Steps Down; Company Shrinks Board at Barron’s

NetApp Off 13%: FBN Ups to Buy on Cash, Takeout Value at Barron’s

Buybacks Pressuring Investment-Grade Companies at Barron’s

Southwest’s International Adventure Wins Fans at Barron’s

Harry’s Dented ETF To Shut Down at Barron’s

Germany to the Euro: Drop Dead at The Atlantic

‘What if Facebook Debuted at $15 and Popped to $35? Nobody Would Complain’ at The Atlantic

The Best Way to Tell If People Are Smack-Talking Your Company on Twitter at The Atlantic

The Right Way to Debate Someone on the Internet at The Atlantic

Smack! The BRICs Hit a Wall of Their Own Making at The Atlantic

Why the Internet Makes It Impossible to Stop Giant Wall Street Losses at The Atlantic

Does It Matter Where You Go to College? At The Atlantic

How the Professor Who Fooled Wikipedia Got Caught by Reddit at The Atlantic

The Wacky World of Prices: Rental Cars, Hollywood, and HBO at The Atlantic

Timeshare Prices Plummet to $1 at SmartMoney

Skepticism grows around Medco/Express Scripts deal at Reuters

Without its PBM Partner, Walgreen is a Sell: Citi at Barron’s

JP Morgan to Settle Overdrafting Case at Barron’s

What a Quarter for GMCR! Can it be Repeated? at Barron’s

Facebook gets an “A” in Financial Reporting at Grumpy Old Accountants

Pimco: Foreclosure Deal Cheap for Banks at Bloomberg

I Didn’t Tell Facebook I’m Engaged, So Why Is It Asking About My Fiancé? at The Atlantic

IRS to Mom and Pop: Drop Dead at The Atlantic

Why Professional Licenses Are a Barrier to Growth at The Atlantic

Authors of Kindle Singles Are Raking in Tens of Thousands of Dollars at The Atlantic

The 400% Man at Smart Money

The Financial Consequences of Too Many Men at University of Minnesota

 

 

Downside Targets for Herbalife (HLF)

After the news of Herbalife (HLF) getting slammed, we were curious about what the downside targets for the stock might be using Edson Gould’s Speed Resistance Lines.  Below is a chart representing the conservative downside target of $45.45 and the extreme downside target of $24.33.

So far, HLF appears to have support for the stock price at $45.45.  However, if HLF falls below the $45.45 level, it would suggests that HLF will decline to, at minimum, $34.89 before finding stabilization in the stock price.  A decline $24.33 would mean that HLF could revisit the 2009 lows.

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We believe that it is worth examining whether or not these downside targets are accomplished.  In our view, the downside targets are reasonable estimates of where the stocks could go before initiating new research on whether these companies have viable business models.

Disclaimer: This piece is a continuation of the examination of Edson Gould’s speed resistance lines as explained in prior articles. This is not an endorsement to sell short at the current levels nor buy these stocks once falling below the extreme downside targets.