Another stock catching my eye is HANS. I think it's too early to add it to the watch list but keep an eye on it. Look for a dip toward $42.00 as a possible bullish entry point.
New Watch List Entries
V - Visa Inc.
VMED - Virgin Media
Active Watch List Candidates
BUCY - Bucyrus Intl.
BVN - Compania de Minas Buenaventura
CHRW - CH Robinson Worldwide
MA - Mastercard Inc.
SBUX - Starbucks Corp.
TASR - TASER Intl
WLT - Walter Energy
Dropped Watch List Entries
ISRG and OXY jumped to the play list. MA has been dropped.
New Watch List Candidates:
Visa Inc. - V - close: $70.10 change: -1.53
We have dropped MA as a watch list candidate and replaced it with Visa (V). Both stocks have been struggling lately but Visa looks weaker right now. Long-term I think the fundamentals are strong for both companies as we move farther and farther away from using cash and checks and more towards plastic (credit and debit cards). Unfortunately the slowdown in the U.S. economy might be taking its toll on these two companies. Shares of Visa look ready to breakdown from a four-month consolidation.
Aggressive traders may want to buy puts on a drop under $70.00. I'm concerned the May low of $68.29 might be support so I am suggesting a trigger to buy puts at $67.75. If triggered our immediate target is $60.25. Once triggered I don't expect this trade to last more than a few weeks. We'll use a stop loss at $70.55.
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the worldâ€™s most advanced processing networksâ€”VisaNetâ€”that is capable of handling more than 10,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visaâ€™s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. (source: company press release or website)
- This is a PUT play -
Break down trigger: $68.00
BUY the 2011 Jan $60 puts (V1122M60) current ask $2.86
Chart of V:
Virgin Media - VMED - close: 20.50 change: +0.03
VMED has been consistently missing its earnings estimates for the last few quarters and yet investors don't seem to care. The stock is less than two points away from a two-year high. The breakout past $18.00 back in July was significant. I am suggesting we take advantage of future weakness to buy the dip. I'm listing a trigger to buy calls at $18.00, which should see additional support with the rising 200-dma. If triggered we'll start the play with a stop loss at $16.40. Our first target is $22.00. Our second, longer-term target is $24.75. I prefer the 2012 LEAPS over the 2011s. FYI: The Point & Figure chart is forecasting a long-term target of $36.
With almost 10 million customers, Virgin Media is the UK's first quad-play provider of broadband, TV, phone and mobile. The company is one of the largest residential broadband providers in the UK, using a unique fibre optic cable network to deliver next generation ultrafast internet access of up to 50Mb to just over half of all homes. Combined with a high speed ADSL service and mobile broadband products, Virgin Media is able to offer broadband internet access to virtually the entire country. Virgin Media has the UKâ€™s most advanced TV on demand service and was the first TV platform to carry BBC iPlayer. It is the second largest provider of pay TV, was the first to launch a high definition TV service and offers a high-specification, HD-ready V+ personal video recorder. The company operates the most popular virtual mobile network in the UK which, when launched, was the worldâ€™s first such mobile phone service. It is also one of the largest fixed-line home phone providers in the country. Virgin Media is also a 50 per cent joint partner with BBC Worldwide in UKTV, which consists of ten channels including Dave, G.O.L.D., Watch and Alibi. (source: company press release or website)
Buy-the-Dip trigger: $18.00
BUY the 2011 Jan $20.00 call (VMED1122A20)
BUY the 2012 Jan $20.00 call (VMED1221A20)
Chart of VMED:
Active Watch List Candidates:
Bucyrus Intl. - BUCY - close: 60.20 change: +0.11
We are still waiting for a correction in BUCY. Currently our plan is to buy calls on a dip at $51.50 but we might jump in early if we see BUCY bounce near $54.00. As of now, if we are triggered at $51.50 (in the next few weeks), we'll use a stop loss at $47.00.
FYI: I prefer the 2012 call LEAPS but the 2011s should work.
Buy-the-Dip trigger: $51.50
BUY the 2011 Jan $60 calls (BUCY1122A60) *adjusted*
- or -
BUY the 2012 Jan $70 calls (BUCY1221A70)
Chart of BUCY:
Compania de Minas Buenaventura - BVN - close: 37.93 change: +0.03
BVN is another mining-related stock that has been holding up pretty well. Shares could be building another bull flag pattern. I am adjusting our entry point again. This time we want to launch bullish positions if BVN dips to $34.00. We'll use a stop loss at $31.40.
Our first target is $42.25. Our second, more aggressive target is $47.50.
Buy-the-Dip trigger: $34.00
BUY the 2011 March $35 calls (BVN1119C35)
Chart of BVN:
CH Robinson Worldwide Inc. - CHRW - close: 66.16 change: +0.97
CHRW continues to show relative strength but I'm still betting on a correction before it breaks out to new highs.
I am suggesting we buy call LEAPS if CHRW dips to $62.00.
More conservative traders may want to hold off and wait for a dip closer to $60.00. If triggered we will use a stop loss at $57.75. Our first long-term target is $67.50. Our second, long-term target is $72.50.
Buy-the-Dip trigger: $62.00
NOTE: I prefer the 2012 calls!
BUY the 2011 January $65.00 calls (CHRW1122A65)
- or -
BUY the 2012 January $70.00 calls (CHRW1221A70)
Chart of CHRW:
Mastercard Inc. - MA - close: 206.34 change: - 2.52
I am temporarily giving up on MA as a bearish watch list candidate. I would still keep it on your personal watch list but in the mean time traders will want to checkout rival Visa (V), which looks ready to breakdown.
Starbucks Corp. - SBUX - close: 24.05 change: +0.01
I don't see any change from my prior comments on SBUX. The stock looks ready to breakdown. You can almost see a bearish head-and-shoulders pattern, which would forecast a drop towards $20. Currently I am suggesting a trigger to open bearish positions at $23.30 (just under the July low of $23.47).
If triggered our first target is $20.15. Our second target is $18.25.
FYI: In the news last week SBUX announced it has bought out its Brazilian partner giving SBUX full ownership of its 23 stores in Brazil. Meanwhile on Friday a couple of articles surfaced suggesting that Via's strong surge in sales (SBUX's new instant coffee brand) could be in doubt. Rumor has it that SBUX employees gave customers free drinks for buying Via or that different products were rung up as Via sales.
- This is a PUT Play -
Break Down trigger: $23.30
BUY the 2011 Jan $20 put (SBUX1122M20)
- or -
BUY the 2012 Jan $20 put (SBUX1221M20)
Chart of SBUX:
TASER Intl. - TASR - close: 3.86 change: +0.04
TASR is still drifting lower. I don't see any changes from my prior comments. Currently the plan is to buy the stock at $4.25. However, we might alter our entry point if we see TASR bounce from the $3.60 level.
This is an aggressive trade and TASR can see big bouts of volatility. If triggered at $4.25 we'll use a stop loss at $3.79. There is some resistance near $5.00 but our first long-term target is $6.00. (Buy the stock, not the options!)
Breakout trigger: $4.25
BUY the stock (TASR) @ 4.25
Chart of TASR:
Walter Energy - WLT - close: 74.24 change: -3.12
Once again shares of WLT have rallied to the $80 level and stalled. Shares hit $79.71 on Thursday. I am suggesting we wait for a breakout over resistance with a trigger to buy calls at $81.00.
If we are triggered at $81 we'll use a stop loss at $74.00. Our target is $99.00.
Keep in mind that WLT is a very volatile stock. We need to keep our position size small to limit our risk.
Breakout trigger: $81.00
BUY the 2011 Jan $90 calls (WLT1122A90)
- or -
BUY the 2012 Jan $100 calls (WLT1221A100)
Chart of WLT: