Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
BUDNone
SSCC 

New Long Plays

Anheuser Busch - BUD - close: 48.32 chg: +0.35 stop: 50.11

Company Description:
Based in St. Louis, Anheuser-Busch Cos. Inc. is the leading U.S. brewer and holds a 50 percent share in Grupo Modelo, Mexico's leading brewer. In a survey of 10,000 business leaders and securities analysts, Anheuser-Busch ranked first overall in quality of products and services among nearly 600 companies researched in FORTUNE magazine's 2004 "America's Most Admired Companies" listing. The company also is one of the largest theme park operators in the United States, is a major manufacturer of aluminum cans and is the world's largest recycler of aluminum beverage containers. (source: company press release)

Why We Like It:
BUD may have had some of the best commercials during this past Sunday's Super Bowl. Unfortunately for shareholders the stock price looks a lot less entertaining. The stock has been consistently trending lower since it built a top near the $55 level back in the summer of 2004. Of course this top was a long-time in forming as BUD struggled with the $55 level back in 2002 as well. Long-term BUD is breaking down on multiple levels whether you look at the weekly or monthly chart. Short-term the stock produced a failed rally bearish reversal last week as investors reacted to its latest earnings report. Now BUD is hitting new relative lows with technical oscillators pointing lower. The P&F chart points to a $43 target. We're going to target the $43.00-44.00 range with an eight-to-ten-week time horizon. This will take patience as we let BUD drift lower.


 

Picked on February 7 at $48.32
Gain since picked: + 0.00
Earnings Date 02/02/05 (confirmed)
Average Daily Volume: 2.4 million

Smurfit-Stone Container - SSCC - close: 15.82 chg: -0.35 stop: 16.55

Company Description:
Smurfit-Stone Container Corporation (NASDAQ: SSCC) is the industry's leading integrated manufacturer of paperboard and paper-based packaging. Smurfit-Stone is the leading producer of containerboard, including white top linerboard; corrugated containers; multi-walled and specialty bags; and clay-coated recycled boxboard. SSCC is the world's largest paper recycler, annually processing and selling more than 6.5 million tons. In addition, Smurfit-Stone is a leading producer of solid bleached sulfate, folding cartons, flexible packaging, labels, and point-of-purchase displays. With approximately 38,600 employees working at nearly 260 manufacturing facilities, Smurfit-Stone can provide paperboard and packaging solutions for any customer, large or small, anywhere in North America. (source: company website)

Why We Like It:
The new year has been a tough one for SSCC. The stock sank during the sharp early-January market sell-off and continued to sink during the latter half of the month as well. The last few days have produced an oversold bounce that failed almost exactly at the 38.2 percent Fibonacci retracement of its January decline. Short-term oscillators like the RSI and stochastics are producing short-term peaks and shares look ready to retest the $15 level with the potential to breakdown. The Point & Figure chart shows a bearish sell signal with an $11 target. We want to target the $14.00 level and we fully expect some congestion as it struggles near the $15 mark but our time frame is about six to eight weeks.


 

Picked on February 7 at $15.82
Gain since picked: + 0.00
Earnings Date 01/25/05 (confirmed)
Average Daily Volume: 1.7 million

New Short Plays

None today.

Premier Investor New Play Archives