Sell NWL for a -8% loss as our stop loss level has been hit.
What can be learned from this losing trade?
The flat large players volume and the negative Twiggs Money Flow suggested that smart money had no interest in this stock as the company made too many acquisitions and took on too much debt. Now the company is having to sell off parts of itself to reduce their debt levels. What they are selling off is at a deep discount because they are desperate to restructure and everyone knows it. This means that they do not have the advantage in price negotiations.
When all the acquisitions were going on by Newell, it started off as an awesome karate kick… BUT