Report
Dave Nicoski ...
  • Ross LaDuke

Vermilion Short Shots: Technically Vulnerable Stocks

Short Shots is a collection of technically vulnerable charts culled from the Negative Inflecting and Toppy columns within our Weekly Compass report or from various technical screening processes. The charts contained in this report have developed concerning technical patterns that suggest further price deterioration is likely. For these reasons Short Shots can also be a great source of ideas for investors interested in short-selling candidates.
Underlyings
A. O. Smith Corporation

A.O. Smith is comprised of North America and Rest of World reporting segments. The company's Rest of World segment is primarily comprised of China, Europe and India. Both segments manufacture and market lines of residential and commercial gas and electric water heaters, boilers, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world. The company's Rest of World segment also manufactures and markets in-home air purification products in China. The company serves residential and commercial end markets in North America with a range of products including water heaters, boilers, water treatment products, and other.

Applied Materials Inc.

Applied Materials provides manufacturing equipment, services and software to the semiconductor, display and related industries. The company's segments are: Semiconductor Systems, which develops, manufactures and sells a range of manufacturing equipment used to fabricate semiconductor chips; Applied Global Services, which provides integrated solutions to support equipment and fab performance and productivity; and Display and Adjacent Markets, which is comprised of products for manufacturing liquid crystal displays, organic light-emitting diodes and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smart phones, and other consumer-oriented devices.

Avery Dennison Corporation

Avery Dennison is engaged in the production of pressure-sensitive materials and a variety of tickets, tags, labels and other converted products. The company sells its pressure-sensitive materials to label printers and converters that convert the materials into labels and other products through embossing, printing, stamping and die-cutting. The company sells other pressure-sensitive materials in converted form as tapes and reflective sheeting. The company also manufactures and sells a variety of other converted products and items not involving pressure-sensitive components, such as fasteners, tickets, tags, radio-frequency identification inlays and tags, and imprinting equipment and related solutions.

Blueprint Medicines Corp.

Blueprint Medicines is a precision therapy company focused on genomically defined cancers, rare diseases and cancer immunotherapy. The company has one precision therapy approved by the United States Food and Drug Administration, and is developing investigational medicines in clinical development, along with various research programs including: Avapritinib, which is for the treatment of systemic mastocytosis (SM); BLU-263, which is for the treatment of indolent SM and other mast cell disorders; pralsetinib, which is for the treatment of RET-altered non-small cell lung cancer, medullary thyroid carcinoma, and other solid tumors; and fisogatinib, which is for the treatment of hepatocellular carcinoma.

BorgWarner Inc.

BorgWarner is a holding company. Through its subsidiaries, the company is a global product provider in technology solutions for combustion, hybrid and electric vehicles. The company manufactures and sells these products worldwide, primarily to original equipment manufacturers of light vehicles (passenger cars, sport-utility vehicles, vans and light trucks). The company's segments are: Engine, which provides turbochargers, eBoosters, timing systems, emissions systems, thermal systems, gasoline ignition technology, cabin heaters, battery heaters and battery charging; and Drivetrain, which provides rotating electrical components, power electronics, clutching systems, control modules and all-wheel drive systems.

Caterpillar Inc.

Caterpillar is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company segments include: Construction Industries, which supports customers using machinery in infrastructure, forestry and building construction; Resource Industries, which supports customers using machinery in mining, heavy construction, quarry and aggregates, waste and material handling applications; Energy and Transportation, which supports customers in oil and gas, power generation, marine, rail and industrial applications, including Cat? machines; and Financial Products, which provides financing and related services.

Chubb Limited

Crane Co.

Crane is a manufacturer of engineered industrial products. The company's segments are: Fluid Handling, which is a provider of engineered fluid handling equipment; Payment and Merchandising Technologies, which provides payment acceptance products, supplies banknotes and banknote security features designs, and manufactures vending equipment and related solutions; Aerospace and Electronics, which supplies components and systems for the commercial aerospace and military aerospace and defense markets; and Engineered Materials, which manufactures fiberglass-reinforced plastic panels and coils, primarily for use in the manufacturing of recreational vehicles, truck bodies, truck trailers.

Illinois Tool Works Inc.

Illinois Tool Works manufactures a range of industrial products and equipment. Automotive OEM segment produces components and fasteners for automotive-related applications. Food Equipment segment is engaged in commercial food equipment. Test and Measurement and Electronics segment produces equipment for testing and measuring of materials and structures. Welding segment produces arc welding equipment, consumables and accessories. Polymers and Fluids segment produces adhesives, sealants, lubrication and cutting fluids for auto aftermarket maintenance. Construction Products segment supplies fastening systems and solutions. Specialty Products segment is focused on patent protection.

KB Financial Group Inc. ADS

L3Harris Technologies Inc

Harris, together with its subsidiaries, provides technology-based solutions. The company has three segments: Communication Systems, which serves markets in tactical communications and defense products and in public safety networks; Electronic Systems, which provides electronic warfare, avionics, and command, control, communications, computers, intelligence, surveillance and reconnaissance solutions; and Space and Intelligence Systems, which provides intelligence, space protection, geospatial, Earth observation, universe exploration, positioning, navigation and timing, and environmental solutions for national security, defense, civil and commercial customers.

Leidos Holdings Inc.

Leidos Holdings is a holding company. Through its subsidiaries, the company is engaged in a science, engineering and information technology that provides services and solutions in the defense, intelligence, civil and health markets. The company's defense solutions segment deploys solutions in the areas of intelligence surveillance and reconnaissance, enterprise information technology, integrated systems, cybersecurity and global services. The company's civil segment integrates and protects physical, digital and data domains. The company's health segment delivers solutions to federal and commercial customers that are responsible for the health and well-being of people including service members and veterans.

Lockheed Martin Corporation

Lockheed Martin is a security and aerospace company. The company has four segments: Aeronautics, which is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft; Missiles and Fire Control, which provides air and missile defense systems, logistics, fire control systems, and mission operations support; Rotary and Mission Systems, which provides design, manufacture, service and support for military and commercial helicopters, radar systems, and simulation and training services; Space, which researches, designs, develops, engineers and produces satellites, space transportation systems, and strategic, strike, and defensive systems.

MKS Instruments Inc.

MKS Instruments is a provider of instruments, subsystems and process control solutions. The company has two segments: Vacuum & Analysis, which provides instruments, components, subsystems and software which are derived from its knowledge in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control and information technology, ozone generation and delivery, radio frequency and data communication power, reactive gas generation and vacuum technology; and Light & Motion, which provides instruments, components and subsystems which are derived from its knowledge in lasers, photonics and optics.

Newmont Corporation

Newmont is primarily a gold producer with operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia and Ghana. The company is also engaged in the production of copper, silver, lead and zinc. The company's operations are organized in five geographic regions; North America, South America, Australia, Africa and Nevada.

Northrop Grumman Corporation

Northrop Grumman is a security company. The company's segments include: Aerospace Systems, which is engaged in the design, development, integration and production of manned aircraft, autonomous systems, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems; Innovation Systems, which is engaged in the design, development, integration and production of flight, armament and space systems; Mission Systems, which is engaged in end-to-end mission solutions and multifunction systems; and Technology Services, which is engaged in delivering solutions and services in support of mission-critical networks and systems.

Parker-Hannifin Corporation

Parker Hannifin is a manufacturer of motion and control technologies and systems, providing engineered solutions for a variety of mobile, industrial and aerospace markets. The company has two reporting segments: Diversified Industrial and Aerospace Systems. The company's Diversified Industrial segment products consist of a range of motion-control and fluid systems and components, which are categorized into the following groups: Engineered Materials, Filtration, Fluid Connectors, Instrumentation, and Motion Systems. The company's Aerospace Systems Segment products are used in commercial and military airframe and engine programs and include control actuation systems and components and pneumatic control components.

Raytheon Company

Raytheon, together with its subsidiaries, is a technology company, focused on defense and other government markets. The company has five segments: Integrated Defense Systems, which is engaged in integrated air and missile defense; large land- and sea-based radar solutions; command, control, communications, computers, cyber and intelligence solutions; Intelligence, Information and Services, which provides technical services to intelligence, defense, federal and commercial customers; Missile Systems, which produces missile and combat systems; Space and Airborne Systems, which develops integrated sensor and communication systems for missions; and Forcepoint, which develops cybersecurity products.

Reinsurance Group of America Incorporated

Reinsurance Group of America is an insurance holding company. Through its subsidiaries, the company is a provider of life and health reinsurance and financial solutions. The company is engaged in providing reinsurance, which includes individual and group life and health, disability, and critical illness reinsurance. The company also provides financial solutions, which includes longevity reinsurance, asset-intensive products, primarily annuities, financial reinsurance, capital solutions and stable value products. The company has five geographic-based and business-based operational segments: United States and Latin America, Canada, Europe, Middle East and Africa, Asia Pacific, and Corporate and Other.

Shinhan Financial Group Co. Ltd.

Summit Materials Inc. Class A

Summit Materials is a holding company. Through its subsidiaries, the company is a construction materials company. The company produces and sells aggregates, cement, ready-mix concrete, asphalt paving mix and concrete products and owns and operates quarries, sand and gravel pits, cement plants, cement distribution terminals, ready-mix concrete plants, asphalt plants and landfill sites. The company is engaged in paving and related services. The company has operations in various states across the United States and in British Columbia, Canada. The company operates a municipal waste landfill in its East segment, and has construction and demolition debris landfills and liquid asphalt terminal operations in its West and East segments.

Univar Solutions Inc.

Univar Solutions is a chemical and ingredient distributor and provider of services. The company purchases chemicals and ingredients from chemical producers worldwide to warehouse, repackage, blend, dilute, transport and sell those chemicals to various customer locations across various countries. The company's business is organized and managed in four geographical segments: Univar Solutions USA, Univar Solutions Canada, Univar Solutions Europe and the Middle East and Africa, and Univar Solutions Latin America, which includes developing businesses in Latin America (including Brazil and Mexico) and the Asia-Pacific region.

Weibo Corp Sponsored ADR Class A

William Lyon Homes Class A

Lyon (William) Homes is a regional homebuilder. The company is primarily engaged in the design, construction, marketing and sale of single-family detached and attached homes in California, Arizona, Nevada, Colorado, Washington, Oregon and Texas. The company's primary markets include Orange County, Los Angeles, the Inland Empire, the San Francisco Bay Area, Phoenix, Las Vegas, Denver, Seattle, Portland, Austin and San Antonio. The company builds and sells across a range of product lines at a variety of price points with sales to entry-level, first-time move-up and second-time move-up homebuyers, as well as a luxury brand and an active adult target segment.

Xylem Inc.

Xylem is water technology company. The company designs, manufactures and services engineered solutions ranging across a variety of applications primarily in the water sector, but also in electric and gas. The company's business segments are: water infrastructure, which serves the water infrastructure sector with pump systems, filtration, ultraviolet and ozone systems and pumping solutions; Applied Water, which serves the usage applications sector with water pressure boosting systems; and Measurement and Control Solutions, which serves the utility infrastructure solutions and services sector by delivering communications, smart metering, measurement and control technologies and infrastructure technologies.

Provider
Vermilion Research
Vermilion Research

Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.

Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.

Analysts
Dave Nicoski

Ross LaDuke

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