Following are Tuesday’s Pops and Drops.Find out what’s going up, what’s going down and whether our traders would double down, fade or run in the other direction!
Apollo GroupThe catalyst: Apollo Group beat earnings expectations and raised its guidance.The trade: It’s a heavily shorted group and I think the pop is a short-covering rally. There are still lot of headwinds, says trader Stephen Weiss, managing partner at Short Hills Capital and author of “The Big Win.” I’d stay away.
MosaicThe catalyst: Although the catalyst was unclear, investors may think this fertilizer benefits as high temperatures in the Midwest threaten to reduce the corn crop. The trade: Mosaic trades at a single digit valuation and with a great cash position. I’m long and I like it, says trader Pete Najarian, co-founder OptionMonster.com.
Harley DavidsonThe catalyst: UBS dropped their earnings per share (EPS) estimates Harley-Davidson in a report issued on Tuesday. The firm currently has a “neutral” rating and a $49.00 target price on the stock.
The trade: I’m skeptical and it seems like the chart is too, says trader Steve Cortes, founder Veracruz, a research and consulting firm.Page 1 of 5 | Next Page