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Compass Minerals International Inc. Message Board

  • new_avatar_2007 new_avatar_2007 May 5, 2009 1:31 PM Flag

    Damn! shorted it under 50 thinking it was going

    to break down. looks like the support at 50 is a little too strong at the moment.

    anyone thinking the same.


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    • I've been short this one for a while. I think the resistance is at 51, and that it will touch 47 soon. If it breaks below 47, look out below. If it closes above 51, start to pare your position.

      Buy longer termed Puts. If the market pulls back -which I have been expecting, but am not seeing- it will work out perfectly.

      That's my current gameplan -I've been on a losing streak however so buyer beware.

      • 1 Reply to dyer_utsa
      • I'm not a technical trader (so I have no opinion on resistance levels or a short-term short), but I've got to believe there are better short candidates than CMP. I would certainly not buy long term puts on CMP. In fact, I've sold several of them.

        CMP has a strong and sustainable foothold in one very stable market (salt) and one growing one (SOP). Shorts could get crushed if SOP prices stay high and volume picks up. On top of that, it's a well-managed company that has been de-levering nicely for a few years.

        If you're bearish on ag (I'm not) why not short MON or POT (I'm long MON common and short Jan 10 puts)? If you're bearish on road salt then I guess LT-puts on CMP are your best bet.

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