SELL The remainder of Five Below, Inc. (FIVE) | Daily Alert September 17
Updated from WSBD 839, March 18, 2021
FIVE’s beautiful breakout and strong upside follow-through from a multi-month base early last month completely fell apart after fears of higher costs (first on Dollar General’s quarterly report, then after Five Below’s own report last week) ripped through the sector.
To be fair, those fears do seem overblown, but we’re wondering if the market is sniffing out something else—FIVE’s massive-volume break (biggest weekly volume since June 2020) not only crushed the recent breakout but has landed the stock below its 200-day line. Long-term, we could revisit the stock again when things shape up, but given the damage, that probably won’t be for a while. We sold our position on a special bulletin Tuesday morning. SOLD
Michael Cintolo, Cabot Growth Investor, cabotwealth.com, 978-745-5532, September 9, 2021
SELL Digital Realty Trust, Inc. (DLR) | Daily Alert October 7
Updated from WSBD 838, February 18, 2021
Digital Realty Trust has broken through technical support on the downside. We recently kept half of the position because the stock moves independently of the overall market at a time when the market is looking increasingly treacherous. But it appears to be independently heading lower. It should be okay over the long term, but I don’t want to hang on through many months of languishing. It’s also not a bad time to take some money off the table. SELL
Tom Hutchinson, Cabot Dividend Investor, cabotwealth.com, 978-745-5532, September 29, 2021
SELL Brady Corporation (BRC) | Daily Alert October 13
Updated from WSBD 843, July 8, 2021
Brady was downgraded to Sell. The stock’s Overall score has slumped to 50, hurt by weakness in Momentum (32) and Earnings Estimates (21). Brady has been under pressure in recent months, and analysts have trimmed estimates for three of the next four quarters. Brady should be sold.
Richard J. Moroney, CFA, Upside, upside stocks.com, 800-233-5922, October 2021
*SELL Half: Lithium Americas Corp. (LAC)
Updated from WSBD 844, August 12, 2021
Let’s start out with a win. Not long ago, we recommended Lithium Americas at $14.08. Today, it’s up to $21.92 and is becoming a bit overbought. Let’s sell the second half of this stock today to secure the win.
Ian Cooper, The Cheap Investor, firstname.lastname@example.org, October 2021