After this past weekend in Omaha, with Mr. Buffett discussing the businesses he likes most are the ones with “moats,” or high barriers to entry in a given field, it is only fitting that a firm involved in a low barrier to entry segment of technology gets taken out back.
ZAGG was once a momentum favorite for hot money longs. But as you can see on the weekly chart below the stock is now in deep trouble, technically, breaking down from well-defined multi-quarter support. Their screen protector business for smartphones and tablets is under intense competition, and the market does not like it one bit.
Unless bulls can recapture $6 with authority a plunge back below $1 is not out of the question.
(I have no position in ZAGG at the time of this writing)
___________________________________
