This post was just published on ZYX Short Sell Change Alert.
There is another report of bird flu in Tennessee. TSN fell on the news but then rebounded in the afternoon on short covering. There is a long-term short position in TSN. TSN is a major vendor of chickens.
The long-term target zone remains $38 to $45.
The short zone remains $64 to $71. This stock can trade in a wide range. The stock closed at $62.00.
We have been telling you for a while that momentum of TSN earnings is not sustainable. Wall Street fell in love with this stock after it brought Hillshire Brands HSH. If you have been following this trade, you already know that subscribers to ZYX Buy profited handsomely when TSN paid an exorbitant price for HSH. HSH was in ZYX Buy portfolio prior to the buyout offer. To date 124 of ZYX Buy portfolio have been bought or have benefited from M&A, subscribers to ZYX Buy service of The Arora Report have profited greatly from these buyouts.
Our last short zone was $72 to $78. At that time most of Wall Street was recommending to aggressively buy TSN.
There is risk to the short position because Wall Street is in love with TSN. However, good entry point for most shorts often is when Wall Street loves them and a good entry point to take profits is when Wall Street hates them.
This is a long-term position.
What To Do Now
Those in the stock may continue to hold.
Those not in the stock may consider scaling in slowly in small tranches if there is a bounce into the new short zone.
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