I was prepared to add Laclede Group Inc. (LG) as a new bullish candidate to the watch list with a trigger to buy calls on a breakout over resistance at $35.00 but the spreads on the options were so wide it seemed too risky. If you're willing to trade the stock instead it could still be a trade for you. The $30-35 zone appears to be a new base and a breakout could herald a new up trend.
New Watch List Entries
Pharmaceutical Product Development Inc. (PPDI)
Active Watch List Candidates
DSX - Diana Shipping Inc.
Dropped Watch List Entries
New Watch List Candidates:
PPDI $23.39 +0.13 -- Pharmaceutical Product Development Inc.
PPDI recently broke through resistance at $22.00 and its exponential 200-dma. Now the stock has a chance to face long-term resistance at the $24.00 level. A breakout here should be the beginning of a new bullish up trend. The Point & Figure chart has already turned bullish with a $31 target. I am suggesting we buy call LEAPS at $24.25. If triggered we'll use a stop loss at $21.90. Our first target is $29.25.
PPD is a leading global contract research organization providing discovery, development and post-approval services as well as compound partnering programs. Our clients and partners include pharmaceutical, biotechnology, medical device, academic and government organizations. With offices in 38 countries and more than 10,500 professionals worldwide, PPD applies innovative technologies, therapeutic expertise and a commitment to quality to help its clients and partners maximize returns on their R&D investments and accelerate the delivery of safe and effective therapeutics to patients.
(source: company press release or website)
Breakout trigger: $24.25
BUY the 2010 July $25.00 calls (symbol: PJQ-GE)
Chart of PPDI:
Active Watch List Candidates:
DSX $14.63 -0.17 - Diana Shipping Inc.
The shipping sector is struggling as the Baltic Dry Goods index continues to fall. Shares of DSX did manage a bounce from technical support at its 200-dma but the trend of lower highs is still in place. I am lowering our trigger to buy LEAPS down to $16.25 and our stop loss to $14.25.
If we're triggered at $16.25 I'm setting our long-term target at $24.00. Investors might want to use the 2011 January $17.50 calls instead.
Buy-the-Breakout trigger: $16.25
BUY the 2011 January $20.00 LEAPS (symbol: XDJ-AD)
Chart of DSX: