Sell Alert: STMicroelectronics (STM)

By Jim Pearce • June 8, 2017

TRADE INSTRUCTIONS
Date: June 8, 2017
Name: STMicroelectronics N.V.
Symbol: STM
Type: Close
Limit: Sell at market

TRADE RATIONALE
STM has traded within two cents of our price target of $17.25 this afternoon, so I am closing this position out a week before our holding period is due to expire. There may be a little bit more upside left in this name, but I am going to take the money and run rather than risk giving back any of our gain. We made a little better than 10% in just under three months, and I’m sure many of our options traders did a lot better than that!

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WillW

06/08/17 ‐ 4:40pm ET June 8, 2017 at 4:40pm ET

STM position closed at $17.25 earlier today. Looks like it finished the day above that. Thank you, Jim!

Jim Pearce

06/09/17 ‐ 9:38am ET June 9, 2017 at 9:38am ET

I thought that it might but wanted to get the sell alert out in time for people to act on it before the market closed. All’s well that ends well!

Janis Bell

06/09/17 ‐ 5:30pm ET June 9, 2017 at 5:30pm ET

Hi Jim, I was too exhausted last night to open my email, but put in a sell limit order very early this morning for yesterday’s market close price. Well I guess it must have opened below that and headed straight down all day because my order wasn’t filled. So now what do I do? Sell at market price Monday or hold out for a few days for an upswing?

Jim Pearce

06/12/17 ‐ 11:30am ET June 12, 2017 at 11:30am ET

From a technical perspective, STM has support around $14.60 so it could still drop a bit further before leveling off. There was no official news on Friday to explain the share price drop, but presumably it is the result of speculation over which suppliers will be used by Apple for its new iPhone being released later this year. My guess is one of STM’s large institutional shareholders has decided to trim back its position in STM, in which case it should bounce back once that block of stock has cleared the market. But that may take a few days since they don’t dump it all at one time.

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