NEW YORK ( TheStreet) -- As difficult as it may be at times, acquiring stocks when they are despised by others demonstrates an ability to separate sensation from logic. Companies become oversold when passion takes over in the market and plunges the prices lower.The desire to escape the suffering of additional losses results in many selling at the particular instant they should buy.
The last date TRW released earnings was May 1, and the closing price before earnings was $45.99. Based on a recent price of $33.60, shares are down 25.3%. TRW is oversold on the daily chart while still in an upward weekly chart trend. The company has rising revenue year-over-year of $16.24 billion in the last fiscal year compared to $14.38 billion in the previous year. The company's earnings before interest and taxes are rising with an EBIT year-over-year of $1.26 billion for the last fiscal year from $1.18 billion for the previous annual report. I like the September$30 put during the next few trading days for 50 cents or greater. My profit target is 40 cents or close out on option expiration date.