Browse > Home / MON / MON

MON

March 14, 2008 1:44 AM

I have commented on Monsanto many times via this blog and emails so thought I would take another look tonight when I heard some hype on TV about it. Normally I consider TV hype as about a week from the time to short it once they have all their suckers…errr clients… in the trade and they take the other side…but let’s look.

I am not a huge fan of this stock in the $120 range, and have made that clear many times…and correctly so. But here is the bottom line. I said long this stock above $93.22. I also said short this stock twice and it plunged faster than the Titanic both times. Just those two short calls were about 40% profit in a total of 6 days. So you have to be careful on these bubble stocks as someone eventually will be owning a $150 stock at $50. So if you trade this stock, you better know what you are doing….

Here is the trade….if it clears $111.57 it should pop to the upside. You could scalp that for a few bucks long. It has to clear $123.80 to be long in that area so you have to be very careful here, IMO. Even if it cleared $123.80, it would also have to clear $129.28 to be long in that range.

So know your risk in the $120 plus range….and ignore the nonsensical hype.

Ohh, and if it clears $93.22 before $129.28…the stock is in for BIG trouble long term, IMO.

Written by · Filed Under MON 

Comments

Got something to say?