Short Fortune Brands Home & Security
Fortune Brands Home & Security, Inc., provides home and security products for residential home repair, remodeling, new construction, and security applications. It operates in four segments: Cabinets, Plumbing, Doors, and Security.
The Cabinets segment manufactures custom, semi-custom, and stock cabinetry, as well as vanities for the kitchen, bath, and other parts of the home. The Plumbing segment manufactures, assembles, and sells faucets, accessories, kitchen sinks, and waste disposals. The Doors segment manufactures and sells fiberglass and steel entry doors to home centers. The Security segment manufactures and sells door hardware to home center, and other retail outlets.
So do you know why I’m staying short Fortune Brands Home & Security (FBHS)? It’s all part of my short housing market thesis.
Fortune Brands Home & Security Inc. (FBHS) reported third-quarter earnings two week.
On a per-share basis, the Deerfield, Illinois-based company said it had net income of 69 cents. Earnings, adjusted for one-time gains and costs, were 93 cents per share.
The results missed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.05 per share.
The maker of products for the home, like faucets, cabinets, windows and doors posted revenue of $1.38 billion in the period, which also missed Street forecasts. Six analysts surveyed by Zacks expected $1.44 billion.
Fortune Brands Home & Security shares have dropped 32 percent since the beginning of the year.
How much lower can Fortune Brands go, lets go to the charts?
Monthly Chart (Curve Time Frame) - monthly supply is at $55 and monthly demand is at $33.
Weekly Chart (Trend Time Frame) – the trend is down.
Daily Chart (Entry Time Frame) – the chart suggests to short Fortune Brands Home & Security if price pulls back to either the daily supply at $49.50 or $52 with a price target at the monthly demand at $33.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
