Add a New Bears Reason

Company: PPG Industries (PPG)
Current price:
Headline: (100 character max)
Analysis:
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0%
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0 votes

  Stock price increase may be stalled

Perhaps the rise in PPG stock price might be stalled for the short term.

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50%
agree
6 votes

  sold off glass works from PPG "Pittsburgh Glass Works" being sued

Kohlberg purchased 60% of PPG glass business last fall. A law suit has been filed in Delaware by Saint Gobain against PGW (Pittsburgh Glass Works). The "sold off" portion of PPG glass is still 40% owned by PPG. The BIG PROBLEM IS Kohlberg associates now running PGW will bankrupt PGW-- just like they did to previous purchases. So Saint Gobain -- get your money quick!!!

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33%
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3 votes

  take winnings off the table

Take increase in stock price from 1st quarter off the table. Time to take the money and run--

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16%
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18 votes

  Purely on technical reasons: Target price $64.98

This is based on a Sell signal of a Jeanty Sell pattern. See http://www.wikinvest.com/image/LUV_SELL.jpg for a description of the pattern.

Here is the current pattern for PPG:

image:JSP_PPG_9_19_08.jpg

Having looked at the definition of a Jeanty Sell Pattern, you should be able to see the 4 components of a Jeanty Sell Signal and figure out the target price of $64.98. Based on a closing price on 9/19/08 of $66.97 this would be a ptential gain of $1.99 or 3.06% if you had shorted the stock at $66.97

Well, as I was doing some work I stumbled on this prediction (yes, I had forgotten about it) and saw what happened on the next bar (The signal was on a Friday, the prediction came true on a Monday, for the gain of $1.99 or 3.06% over the weekend). Here is what the chart looked like on the next bar: Image:PPG-9-22-08.jpg

Now, another tidbit. After we hit our target, the stock went into a freefall and hit a low of $43.63. This means that one could have made a lot more than just the $1.99. In fact, one could have made about $30.00!!! However, these patterns do not predict this kind of winfall. They provide specific targets which very often represent a turnaround point. However, there are indeed times when the stock keeps going in the same direction. But even in those cases, though the pattern would have you exit well before the BIG gains, you probably would have found other beautiful patterns to plow your profits into.

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