Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
AMMD CNQ

New Long Plays

American Medical - AMMD - close: 39.71 chg: +0.44 stop: 37.99

Company Description:
American Medical Systems, headquartered in Minnetonka, Minnesota is a diversified supplier of medical devices and procedures to cure erectile dysfunction, benign prostatic hyperplasia, incontinence, and other pelvic disorders in men and women. Although not life threatening, these disorders can significantly diminish one's quality of life and profoundly affect social relation-ships. In recent years, the number of people seeking treatment has increased markedly as a result of longer lives, higher quality-of-life expectations and greater awareness of new treatment alternatives. American Medical Systems' products reduce or eliminate the incapacitating effects of these diseases, often through minimally invasive therapies. The Company's products were used to treat over 120,000 patients in 54 countries during the last year. (source: company website)

Why We Like It:
We like AMMD because it's a simple buy the bottom of its rising channel play. This medical device company's stock has been consistently channeling higher for months with traders buying dips to the simple 100-dma. They bought the dip again just a few days ago and now shares are breaking out over the 50-dma. Short-term technicals have turned positive and its MACD has just produced a new buy signal. We want to use a TRIGGER at 40.55 to capture the next leg higher. Our target is the $44-45 range and we want to see AMMD reach it before the February 17th earnings. We do not plan to hold over the earnings report.

Picked on February 1 at $xx.xx <-- see TRIGGER
Gain since picked: + 0.00
Earnings Date 02/17/05 (confirmed)
Average Daily Volume: 286 thousand

Canadian Nat. Res. - CNQ - close: 45.84 chg: +1.90 stop: 42.75

Company Description:
Canadian Natural is a senior oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore West Africa. (source: company website)

Why We Like It:
We have highlighted CNQ and its inverse or bullish head-and-shoulders pattern before in the Premier Investor newsletter. Today CNQ finally broke out above the neckline of its H&S pattern or more easily described as resistance at the $45.00 mark. The move was fueled by a Lehman Brothers upgrade to "over weight" from "equal weight". Volume was way above average on the breakout, which is normally bullish. The H&S pattern points to a $52.50 target. Yet we only want to trade CNQ up to its February 23rd earnings report. Our short-term target is the $49.50-50.00 range. We'll start with a stop loss under Monday's low. We're not expecting a dip but if CNQ pulls back to $44.50-45.00 we'd use it as an entry point but look for signs of a bounce before initiating a position.

Picked on February 1 at $45.84
Gain since picked: + 0.00
Earnings Date 02/23/05 (unconfirmed)
Average Daily Volume: 428 thousand

New Short Plays

None today.

Premier Investor New Play Archives