Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
TOA SMMX

New Long Plays

Technical Olympic - TOA - cls: 29.68 chg: +0.63 stop: 28.95

Company Description:
TOUSA is a leading homebuilder in the United States, operating in 15 metropolitan markets located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. TOUSA designs, builds, and markets high- quality detached single-family residences, town homes, and condominiums to a diverse group of homebuyers, such as "first-time" homebuyers, "move-up" homebuyers, homebuyers who are relocating to a new city or state, buyers of second or vacation homes, active-adult homebuyers, and homebuyers with grown children who want a smaller home ("empty-nesters"). It also provides financial services to its homebuyers and to others through its subsidiaries, Preferred Home Mortgage Company and Universal Land Title, Inc. (source: company press release)

Why We Like It:
TOA is a homebuilder that is ignoring some of the recent weakness in the homebuilding sector. We like how the stock is in a classic rising channel with volume rising on the current bounce from the bottom edge of the channel. The company recently announced a 5-for-4 stock split due April 1st. The upcoming split, while not a big one, should also keep the bullish trend alive. However, we're a little cautious given the weakness in the broader market so we want to use a TRIGGER over what could be round-number resistance at the $30.00 level. Our entry point to go long will be $30.05. Our short-term target is the $32.00 level but technical traders could aim for the $33 mark, which should be closer to the top of the channel.

Picked on March xx at $xx.xx <- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/16/05 (confirmed)
Average Daily Volume: 135 thousand
 

New Short Plays

Symyx Tech. - SMMX - close: 23.79 chg: -0.65 stop: 26.01

Company Description:
Symyx develops and applies high-throughput experimentation methods, instrumentation and software to enable accelerated discovery of proprietary materials and processes in the chemical, petrochemical, pharmaceutical, electronics, consumer goods, and automotive industries. Symyx offers these proprietary technologies to customers seeking to transform their research productivity through research collaborations, Discovery Tools sales, and the license of materials, intellectual property, and software. (source: company press release)

Why We Like It:
SMMX is breaking down. The stock tried to build a base above the $24.00 level and its 200-dma for a couple of months but the late February rally failed near $29. Now shares are breaking support and the P&F chart's sell signal points to an $18.00 target. We are only targeting a move to the $20.00 level, which is likely to be round-number, psychological support. We expect the trip to take a good six to eight weeks with potential support at $22.00 along the way.

Picked on March 21 at $23.79
Change since picked: - 0.00
Earnings Date 02/03/05 (confirmed)
Average Daily Volume: 173 thousand

Premier Investor New Play Archives