KR: Fundamentals > Technicals
In recent weeks I noticed some technicians becoming bearish on one of my favorite stocks: the country’s leading grocer, Kroger (KR). In addition to Greg Krupins, one of the most well known technicians – Carter Worth – weighed in bearishly on CNBC’s Fast Money a couple weeks ago. Unfortunately for the technicians – despite its stock not doing much for the last 9 months – KR’s underlying business continues to chug along and produce stellar results. And in the wake of another stellar quarter released this morning, the market is taking notice sending KR shares up nearly 7%. It’s really not a great idea to short high quality companies with excellent fundamentals trading at 10x earnings – even if its stock price has crossed through one of your precious lines.