What should I be looking at when researching TXT Stocks?

Question

I am learning how to trade stocks and am currently watching TXT stock. I purchased about 200 shares short and the stock is trading at about 2.26 low and I'm thinking of getting out of it. Although because it's still trading on the high side of it's 52 wk, I'm not sure if that's a sign that it may go down more or that it could start to go up again. My question is this, What should I be looking at other then maybe checking what the company is currently doing in the news?
I also remember something about checking the P/E. What am I looking for in that number?

yes, I want to cover and keep the difference, But what are the signs that I should do that. I appreciate all suggestions although, What I'm asking for is the information I should be looking at to make that decision myself.

Answer 1

I'm confused.

TXT is the symbol for Textron. It closed (November 26, 2007) at $64.37, which is down ("low"?) some $2.61. You "purchased" 200 shares and this is "short"? That usually means you "shorted the stock", as in "sold it short", hoping to buy it back ("cover") when it is cheaper, keeping the difference.

As for TXT, it is highly rated in its industry. The price has been steadily tracking up, but at a rather flat slope (which looks much better from the perspective of prices since 2003). With earnings per share at $3.46 last year and guessed at $3.49 this year, we see that it makes money (so prices shouldn't fall far if they continue to do so any), but it isn't making a whole lot more than before, so the rises won't be too spectacular (unless some earnings surprise is announced--then you buy it with both hands).