Printer maker Lexmark (ticker: LXK) presents an interesting short opportunity with a follow up reversal play.
Shares of LXK dropped almost a third in the beginning of October, after the company lowered its 3rd quarter outlook in half. LXK is trading close to a 5 year low and about half of its one year high. If rumors of an leveraged buy-out don’t pan out, I expect to see further drops in the stock price to around low $30’s or high $20’s.
LXK 1-yr chart:
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