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FDP None
ISSC

New Long Plays

Fresh Del Monte - FDP - close: 30.82 chg: +0.56 stop: 29.89

Company Description:
Fresh Del Monte Produce Inc. is one of the world's leading vertically integrated producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared fruit and vegetables, juices, beverages, snacks and desserts in Europe, the Middle East and Africa. Fresh Del Monte markets its products worldwide under the Del Monte brand, a symbol of product quality, freshness and reliability since 1892. (source: company press release)

Why We Like It:
Both FDP and rival CQB have been seriously out performing the markets over the last five or six months. However, while CQB is trading near its highs FDP is just now breaking out over a six-week consolidation and looks ready to catch up to its rival. Volume has been growing the last few sessions and volume was above average on today's breakout over the 50-dma and its trend of lower highs. Technically FDP's RSI oscillator looks good and its MACD just produced a new buy signal. The bullish P&F chart points to a $50 target. We want to go long at current levels and target a move toward the $33.00 region, which was resistance in mid-February. We'll stock our stop loss under recent support at the $30.00 mark.

Picked on March 22 at $30.82
Change since picked: + 0.00
Earnings Date 02/15/05 (confirmed)
Average Daily Volume: 201 thousand

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Innovative Solutions... - ISSC - cls: 31.50 chg: +1.79 stop: 29.25

Company Description:
Headquartered in Exton, PA. Innovative Solutions & Support, Inc. (www.innovative-ss.com) designs, manufactures and markets flight information computers, flat-panel displays and advanced monitoring systems that measure and display critical flight information. This includes data relative to aircraft separation, airspeed and altitude as well as engine and fuel data measurements. (source: company press release)

Why We Like It:
It might seem a little odd to be adding a bullish play in the software sector when the GSO software index is breaking down to new relative lows. Normally we would suggest against such a strategy. However, ISSC is different. While it's true that ISSC has been consolidating sideways over the last three months like the GSO index, now instead of breaking down like the GSO, shares of ISSC are breaking upward. ISSC has actually been consolidating in a neutral pattern of higher lows and lower highs. This neutral wedge-like shape has produced a bullish breakout with volume well above average. The median analyst target for ISSC is the $35.00 level and that coincides with the highs from December. We are also going to make the $35.00 level our target. It is worth nothing that while ISSC's long-term trend is bullish the P&F chart is currently in a sell signal. It will take a move over the $32.00 mark to reverse the P&F chart into a new buy signal. We plan to exit the play before ISSC's late April earnings report so we have about a month for the stock to reach our target.

Picked on March 22 at $31.50
Change since picked: + 0.00
Earnings Date 01/19/05 (confirmed)
Average Daily Volume: 193 thousand

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