DLA new pick for Tuesday 12/2

The pick for Tuesday is DLA. Lets get right to it. First of all lets look at its analysts estimates:

You can see that the stock has a way low Growth estimate in relation to its industry benchmark and the Sector. The more of a disparity between the two, the more rock and roll to the downside when the stock finally reports. Also look at the last 4 quarters of earnings surprises vs estimates. In the red all 4 quarters and there was even a HUGE miss of -700%. Add all this up, and there is a pretty good chance that things are going to drop when it reports later in the week. There has been a decent run up as well:

Look at the steady peak of the RSI. Same thing with the MACD and the MACD is even starting to show signs of a drop. While there are no options for this stock, we are going to short it providing that there is not a drop tomorrow morning: Here is the standing order. If in the first hour of trading there is no drop and perhaps a bit of a climb ( the main thing is no drop) go ahead and short it and we will hold it until Friday or the following Monday. If on the other hand tomorrow there is a big sudden climb, that will be an indicator of insider trading activity and we then dont want to touch it.
So the bottom line is if the stock is still holding or slightly up, go ahead and short it. I will be logging on tomorrow at about 12pm chicago time as I will be attending a seminar in the morning. I see no news in the pipeline, so everything seems set.

Good Luck,
Mark