Sabrient Select Opportunity Virtual Portfolio

August 12, 2010 – Sell Short TXI

The market is searching for support, and these low volume August days are keeping things volatile. I have been looking for the VIX to hit 28 again, and today it reached as high as 27.21. However, right now it is actually down slightly on the day even though the market is still down. 

I’m going to take advantage of this mid-day bounce and short another fundamentally weak stock.

Texas Industries (TXI) is a supplier of heavy construction materials. It carries a STRONG SELL rating in the Sabrient Ratings Algorithm, a dismal Company Outlook Score of less than 2, a Value Score of 21 and a Growth Score of 8. I am adding it as a Short position to the Select Opportunity Virtual Portfolio at a price of $32.04 that I see right now. 

I’ll place a mental stop at a closing price above Monday’s close of $33.34.

Best Regards,   

Scott Martindale