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I always use fundamental analysis when evaluating which stocks to invest in, but I also think it is important to look at the technical side as well. After doing fundamental analysis, I want to see how a stock looks based on the charts, including the 50 and 200 day moving averages and the relative strength index, as well as other technical indicators before deciding to buy.
When evaluating this information you can find stocks that appear to be starting what might be a significant new uptrend as well as stocks that are in a serious downtrend. One sign to watch for is when a stock has hit a price level and failed to go higher twice. This event is called a "Double Top" and it is viewed as a bearish sign. After hitting a double top, some stocks decline precipitously, while others go sideways or make another attempt to move higher. I strongly encourage investors to be aware of how a stock looks in terms of the charts, as this can give you an edge over using just fundamental analysis.
The companies below all have a recent double top formation. Here are the companies and charts:
The Men's Warehouse (NYSE:MW) shares are trading at $26.94. The Men's Warehouse is a specialty retailer focused on suits and formal wear for men. These shares have a 52 week range of $17.66 and $29.62. The 50 day moving average is $26.73 and the 200 day moving average is $23.73.

Fundamentals: Earnings estimates for MW are $1.81 per share for the current fiscal year and $2.08 for the next. This company has a strong balance sheet with plenty of cash, and basically no debt. The book value is stated at $18.38. The concern here could be that with oil prices surging, discretionary purchases like suits or formal wear might be postponed or cancelled.

(Click charts to expand)

Weyerhaeuser Co., (NYSE:WY) is trading at $24.63. WY is a forest products company, based in Washington. These shares have a 52 week range of $15.06 and $53.69. The 50 day moving average is $23.79 and the 200 day moving average is $18.23.
Fundamentals: Earnings estimates for WY are at 71 cents per share for 2011, and $1.04 in 2012. This company has a balance sheet with plenty of debt. According to Yahoo Finance, WY has about $5 billion in debt and only about $1.47 billion in cash. The book value is stated at $8.64. The dividend is not great either, only 60 cents per year, which is equivalent to a yield of 2.6%. If I owned these shares, I would sell them. The high debt, low dividend, and high PE ratio, do not appeal to me.

Weingarten Realty Investors (NYSE:WRI) is trading at $24.09. WRI is a real estate investment trust (REIT) based in Texas, and it focuses on shopping centers and industrial property. These shares have a 52 week range of $18.21 and $26.08. The 50 day moving average is $24.63 and the 200 day moving average is $22.43.

Fundamentals: Earnings estimates for WRI are about $1.72 per share in 2011, and $1.87 for 2012. This company also has plenty of debt. According to Yahoo Finance WRI has about $2.6 billion in debt and only about $24 million in cash. The book value is stated at $14.94. The dividend is $1.10 per year, which is equivalent to a yield of 4.4%.

United Rentals (NYSE:URI) is trading at $32.40. URI operates an equipment rental business in the U.S., Canada and Mexico. These shares have a 52 week range of $8.20 and $33.63, so these shares are trading very close to the 52 week highs. The 50 day moving average is $30.17 and the 200 day moving average is $19.71.
Fundamentals: Earnings estimates for URI are at $1.53 per share in 2011, and $2.68 per share in 2012. According to Yahoo Finance the book value is stated to be slightly negative. It also states URI has about $2.93 billion in debt and only about $203 million in cash. There is no dividend, and these shares look expensive to me, especially with so much debt.

Union Pacific Corp., (NYSE:UNP) is trading at $98.81. UNP provides rail transportation services and is based in Nebraska. These shares have a 52 week range of $65.99 and $99.50. The 50 day moving average is $95.06 and the 200 day moving average is $85.15.

Fundamentals: Earnings estimates for UNP are about $6.53 per share in 2011, and $7.62 for 2012. The book value is stated at $36.14. The dividend is $1.52 per year, which is equivalent to a yield of 1.6%. This stock needs to break the $100 mark, but just hasn't been able to, so it might trade sideways for awhile.

Ziopharm Oncology (NASDAQ:ZIOP) is trading at $6.15. ZIOP is a biotechnology company based in New York. These shares have a 52 week range of $3.03 and $6.45, so these shares are trading very close to the 52 week highs. The 50 day moving average is $5.89 and the 200 day moving average is $4.53.
Fundamentals: Earnings estimates for ZIOP are for a loss of 82 cents per share in 2011, and a 74 cent loss per share in 2012. According to Yahoo Finance the book value is stated to be about 48 cents per share. It also states ZIOP has about $60 million in cash and basically no debt.

Danaher Corp., (NYSE:DHR) is trading at $51.93. DHR is based in Washington, DC., and manufactures instruments, tools, monitoring sensors and more. These shares have a 52 week range of $35.24 and $52.37, so these shares are trading very close to the 52 week highs. The 50 day moving average is $49.70 and the 200 day moving average is $43.45.
Fundamentals: Earnings estimates for DHR are for a profit of $2.69 per share in 2011, and profits of $3.05 per share in 2012. According to Yahoo Finance the book value is stated to be $20.89. It also states DHR has about $2.82 billion in debt and about $1.63 billion in cash. The dividend is minimal, only 8 cents per share for a yield of .2%.

Talisman Energy, Inc., (NYSE:TLM) is trading at $24.33. TLM is a independent oil and gas company, based in Canada. These shares have a 52 week range of $14.70 and $25.21, so these shares are trading very close to the 52 week highs. The 50 day moving average is $23.50 and the 200 day moving average is $19.48.
Fundamentals: Earnings estimates for TLM are for a profit of $1.29 per share in 2011, and $1.40 per share in 2012. According to Yahoo Finance the book value is stated to be $10.54 per share. It also states TLM has about $1.7 billion in cash and $4.38 billion in debt. Talisman pays a dividend of 25 cents per share, which is equivalent to a yield of 1.1%.

Warner Chilcott (NASDAQ:WCRX) is trading at $23.34. WCRX is based in Dublin, and manufactures specialty pharmaceuticals. These shares have a 52 week range of $19.01 and $30.57. The 50 day moving average is $23.55 and the 200 day moving average is $21.40.
Fundamentals: Earnings estimates for WCRX are for a profit of $3.64 per share in 2011, and profits of $3.99 per share in 2012. According to Yahoo Finance the book value is stated to be slightly negative. It also states WCRX has about $4.68 billion in debt and about $402 million in cash.

Spreadtrum Communications (NASDAQ:SPRD) is trading at $18.93. SPRD, based in China, manufactures semiconductors. These shares have a 52 week range of $5.54 and $24.20. The 50 day moving average is $20.94 and the 200 day moving average is $15.05.
Fundamentals: Earnings estimates for SPRD are for a profit of $1.90 per share in 2011, and profits of $2.30 per share in 2012. According to Yahoo Finance, the book value is stated to be $4.14. It also states SPRD has about $45 million in debt and about $207 million in cash.

Under Armor, Inc., (NYSE:UA) is trading at $68.32. UA, based in Maryland, manufactures apparel and footwear. These shares have a 52 week range of $29.12 and $70.69. The 50 day moving average is $64.11 and the 200 day moving average is $49.67.
Fundamentals: Earnings estimates for UA are for a profit of $1.65 per share in 2011, and profits of $2.02 per share in 2012. According to Yahoo Finance, the book value is stated to be $9.71. With these shares trading at nearly 35 times 2012 earnings, I would be selling these shares quickly if I owned them. At the end of the day, I can't pay 35 times forward earnings for a company that make sneakers and shirts.

The Timken Company (NYSE:TKR) is trading at $51.16. TKR, based in Ohio, manufactures ball bearings and other industrial products. These shares have a 52 week range of $24.84 and $52.69. The 50 day moving average is $49.32 and the 200 day moving average is $41.04.
Fundamentals: Earnings estimates for TKR are for a profit of $3.61 per share in 2011, and profits of $4.26 per share in 2012. According to Yahoo Finance, the book value is stated to be $19.68. It also states TKR has about $514 million in debt and about $892 million in cash. Timken pays a dividend of 72 cents per share which is equivalent to a yield of 1.5%.

Trimble Navigation (NASDAQ:TRMB) is trading at $49.91. TRMB, based in California, manufactures navigational and other technical instruments. These shares have a 52 week range of $26.73 and $50.89, so these shares are trading close to their highs. The 50 day moving average is $47.23 and the 200 day moving average is $37.20.
Fundamentals: Earnings estimates for TRMB are for a profit of $1.96 per share in 2011, and profits of $2.28 per share in 2012. According to Yahoo Finance, the book value is stated to be $11.30. It also states TRMB has about $153 million in debt and about $220 million in cash.

Raymond James Financial (NYSE:RJF) is trading at $37.43. RJF is an investment brokerage company based in Florida. These shares have a 52 week range of $22.91 and $39.68. The 50 day moving average is $37.21 and the 200 day moving average is $30.09.
Fundamentals: Earnings estimates for RJF are for $2.53 per share in 2011, and profits of $2.86 per share in 2012. According to Yahoo Finance, the book value is stated to be $19.17 per share. These shares have had a great run, but they look played out based on the chart and valuation metrics like book value and PE ratio. Raymond pays a dividend of 52 cents per share which is equivalent to a yield of 1.4%.

Onyx Pharmaceuticals, Inc., (NASDAQ:ONXX) is trading at $34.05. ONXX is biotechnology company that is based in California. These shares have a 52 week range of $19.54 and $37.85, so these shares are trading fairly close the high. The 50 day moving average is $35.71 and the 200 day moving average is $29.78.
Fundamentals: Earnings estimates for ONXX are for a profit of 16 cents per share in 2011, and profits of 22 cents per share in 2012. According to Yahoo Finance, the book value is stated to be $11.10. It also states ONXX has about $153 million in debt and about $549 million in cash. Like many biotechs, these shares look expensive when looking at the PE ratio.

Disclaimer: The data is sourced from Yahoo Finance and Finviz.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.
Source: 15 Stocks Sending a Bearish Signal