Short City Update: McGraw-Hill, hold short; Paychex, cover short

Posted Sep 15th 2009 3:20PM by Joseph Lazzaro
Filed under: Short Stories, McGraw-Hill Companies (MHP)

Just call it 'one win, one loss' with these two shorts, first recommended on May 13, 2009.

McGraw-Hill Companies (NYSE: MHP). Hold Short, first recommended on May 13, 2009 at a price of $29.89. After flirting with the Buy/Stop Loss at $36, MHP has resumed the predicted path: down. Belt-tightening by states, school districts, and by other education institutions does not bode well for MHP's education publishing wing. Cover Short on a bounce off $20 or $15. Buy/Stop Loss if you were to sell shares in this company: $36.

Paychex (NASDAQ: PAYX). Cover Short, first recommended on May 13, 2009 at a price of $26.82. Trading Loss: $1.10 per share: can't win them all. The U.S. unemployment rate may continue to rise, but workforce reductions are tapering, which suggest new potential client for PAYX. the recession will continue to weigh on Paychex' revenue.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.

Tags: MHP, Paychex, PAYX