It’s Just Water, People. Cool it! (PNR)

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Important Notice to Subscribers:

Next Monday is the fast of Yom Kippur.

We will not be publishing on that day.

Publication will resume next Thursday, with A Jew and His Gold.

May you all have an easy and meaningful fast!

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London, England’s Pentair plc (NYSE:PNR) builds and sells everything you need related to water—from your pool to your home filtration and irrigation needs, right up to your community’s desalination project!

Anywho, the stock has had quite a run, and we feel she’s now topped out and is ready for a dive.

We’ve also crafted a beautiful risk-defined trade for you that stands to NET 4900% if we’re right.

But first, some fundamentals.

• The stock’s current P/E is 22.25, a number analysts expect to shrink by a third this time next year—to just 15.68.
• Annual Yield on the shares is 1.32%, and
• Price to Book is pushing it, at 3.73.
• Beyond that, EPS FELL this year by 12.10%, and
• The company carries too much debt.

But before we get to the chart, it might be wise to get a broader view of price action, say, for the last two years.

Take a look—

This is the weekly paste-up, and it shows quite clearly the eight month head and shoulders bottom that spanned the last half of 2022 (in blue).

It also shows the upside count (vertical, in red) from the formation’s bottom up to the neckline (in black).  That’s the same gain technicians expect to see from the neckline higher.

And as you can see, that’s precisely the level to which we’ve arrived.

And that’s STRIKE ONE against the stock.

Take a look now at the daily—

The numbers look good.

Maybe swing a bigger line…?

.ותשובה ותפילה וצדקה מעבירין את רוע הגזרה

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew