A broken camera brought the company to my attention, but Canon's broken chart and earnings trend places the stock in a shadow. Revenue fell into a hot tub time machine, only instead of the 1980s, Canon stepped back into 2009, into the depths of the financial crises. If Canon is near 52-week lows during QE3 and record S&P 500 highs, what's the scene when the era of cheap easy money is over? I don't think it's favorable.
Don't short Canon because technical analysis suggests a dead cat bounce at this level; however, use share price increases as an opportunity to take money off the table. Use the capital to buy a company that is executing for shareholders like Toyota or Google. Your portfolio will be glad you did.
At the time of publication the author held no positions in any of the stocks mentioned.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV