I'm Reiterating my Buy rating for General Cable Corp. (NYSE: BGC), first recommended on May 5, 2009 at a price of $34.59. Since the May recommendation, BGC has run into resistance at/near $43. The stock broke through psychological resistance at $40 (twice), rallied slightly higher, only to fall back both times.
Further, I'm concerned about a possible bearish head-and-shoulders formation if the stock rallies and fails again near $40 with the next month or so. For now, however, I'm sticking with the stock.
I've also revised the Sell/Stop Loss to $28 from $17, to guard against any nonsense: a gap up at $28 provides support, as does the $30 level, and technical support around $32. The First Call FY2009/FY2010 EPS estimates for BGC are $3.11 to $3.11.
Stock Analysis: General Cable Corp. is a moderate-risk stock. If you've already purchased the company's shares, hold them. If you've haven't, don't buy any shares at this time. Sell/Stop Loss if you bought shares in this company: $28.
- -
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
