This post was just published on ZYX Short Sell Change Alert.
Tyson (TSN) is short from an average of $68.64. Tyson stock is trading at $59.29 as of this writing. 90% of full core position size is being held after partial profits were recently taken on this position.
TSN earnings were just released. We have been saying for a while that TSN earnings were inflated and could not be sustained. Now that call is proving spot on. TSN earnings were lower than both the consensus numbers and the whisper numbers. The stock price has fallen $4 on earnings.
From the last post,
TSN is a major meat producer. Meat inventories are hitting record highs. The problem with meat is that it starts stinking if it is not sold. There are indications that cold storages are running out of space.
In the very long term TSN can go down to $38 to $45. However the first target zone is $54 to $57.
What To Do Now
Those in the stock may consider taking profits on a 10% tranche right here around $59. Consider taking profits on another 20% tranche in the zone of $54. to $57.63.
Those not in the stock may consider starting a small short position if there is a bounce into the zone of $62 to $64.88. This call will not be valid if the bounce does not happen over the next 10 days.
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