Since you’re probably still working through yesterday’s Investment Digest issue, I’m keeping today’s Daily Alert short with a brief sell alert from Cabot Market Letter.
EW was recommended by Cabot Market Letter at $104.24 in Investment Digest issue 726, dated September 5, 2012.
“In any given year, there are four earnings seasons, and while we usually experience our fair share of exciting gaps higher, there are usually one or two ugly losers every year as well. Edwards Lifesciences (EW, $88) qualifies in that camp — the stock imploded yesterday after warning that third quarter results would fall short of estimates, due mainly to weakness in Europe. On a positive note, management made it sound like this underperformance could be a one-quarter event, but the stock’s complete breakdown tells us big investors are focusing on the Europe news.
“Such a big drop tells us perception has changed in a big way, so we sold all of our shares in a special hotline last night. If you want to hold onto a small position to see how the stock rebounds, that’s fine, but the main goal should be to prevent a bad situation from getting even worse. SOLD.”
- Michael Cintolo, Cabot Market Letter, October 10, 2012