Dan Fitzpatrick
This is a segment of a column that was originally published on RealMoney on May 21 at 11 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.
For more information about subscribing to RealMoney, please click here.Friday afternoon, I noticed that Ceradyne (CRDN Quote - Cramer on CRDN - Stock Picks) began trading lower on very heavy volume. I looked around for a catalyst but couldn't find any reason for the stock to be selling off so dramatically. May options expired on Friday, and I couldn't really see anything unusual in the May 65 or 70 strikes. Ultimately, I found the likely culprit: a news clip on NBC's Dateline previewing a Sunday night feature on Dragon Skin body armor, manufactured by Pinnacle Armor, which was purported to be superior to the current product manufactured by Ceradyne that is used by our brave troops in Iraq and Afghanistan. Last night I watched Dateline, and the story does raise some issues. I don't know any more about this issue than the next guy -- but I do know that it is an issue. How big an issue? Watch the stock price. The last time the stock fell on heavy volume, the uptrend quickly reasserted itself. We'll need another day or two of price data to determine whether the uptrend is in trouble. Meanwhile, I'd suggest protecting your profits on this stock with a stop just below Friday's low. (Please see chart below.)
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