Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
None LOW
  XMSR

New Long Plays

None today.
 

New Short Plays

Lowes Companies - LOW - close: 54.81 change: -1.53 stop: 56.51

Company Description:
With fiscal year 2004 sales of $36.5 billion, Lowe's Companies, Inc. is a FORTUNE 50 company that serves approximately 11 million customers a week at more than 1,100 home improvement stores in 48 states. Based in Mooresville, N.C., the 59-year old company is the second-largest home improvement retailer in the world. (source: company press release)

Why We Like It:
Home improvement retailer LOW is struggling to maintain altitude. The stock has been channeling sideways between $55.00 and $60.00 for the past five months. After a long-slow, six-week drift toward support near $55.00 the stock broke down under the $55.00 level and its 200-dma after being downgraded this Friday. The move helped produce a new triple-bottom breakdown sell signal on its P&F chart with a $50.00 target. We are willing to short the stock at current levels and target a move to the $51.00-50.00 range. More conservative traders may want to wait for LOW to breakdown under potential support at the $54.00 mark before initiating positions.

Picked on April 10 at $54.81
Change since picked: - 0.00
Earnings Date 05/16/05 (unconfirmed)
Average Daily Volume: 3.0 million

---

XM Satellite Radio - XMSR - cls: 30.67 chg: -0.86 stop: 32.21

Company Description:
XM Satellite Radio is America's number one satellite radio service with 3.77 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City and Nashville, XM offers more than 150 digital radio channels of choice from coast to coast: 67 commercial-free music channels; 64 channels of premier sports, news, talk, comedy, children's and entertainment programming; and 21 channels of the most advanced traffic and weather information for major metropolitan areas nationwide. XM Satellite Radio is the satellite radio leader in sports programming, offering thousands of live sporting events every year. (source: company press release)

Why We Like It:
Like many stocks that turned in scorching returns during the second half of 2004 XMSR is suffering in 2005. Shares appear to be declining in a very volatile descending channel. On this past Friday the stock just produced a failed rally near the $32.00 level of resistance, which coincides with the top of its descending channel. We also like the bearish P&F chart that points to a $20.00 target. We believe that XMSR could trade into the $26-25 range before its early May earnings report. We are willing to short the stock here at current levels. More conservative traders may want to strongly consider waiting for XMSR to breakdown under round-number support at the $30.00 mark.

Picked on April 10 at $30.67
Change since picked: - 0.00
Earnings Date 05/05/05 (unconfirmed)
Average Daily Volume: 5.2 million
 

Premier Investor New Play Archives