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GHL  
HUM  

New Long Plays

Caremark - CMX - close: 43.30 chg: +1.51 stop: 40.95

Company Description:
Caremark Rx, Inc. is a leading pharmaceutical services company, providing, through its affiliates, comprehensive drug benefit services to over 2,000 health plan sponsors and their plan participants throughout the U.S. Caremark's clients include corporate health plans, managed care organizations, insurance companies, union, government agencies and other funded benefit plans. The Company operates a national retail pharmacy network with over 59,000 participating pharmacies, seven mail service pharmacies, the industry's only FDA-regulated repackaging plant and 21 licensed specialty pharmacies for delivery of advanced medications to individuals with chronic or genetic diseases and disorders. (source: company press release)

Why We Like It:
CMX has produced a strong bullish breakout through the top of its recent trading range. The company reported earnings last week that were inline with expectations but management guided higher for 2005. Today shares climbed 3.6 percent on volume almost three times the norm, which suggests more strength ahead. Plus, the stock broke through resistance near the $42.00 level, which dates back to the January highs. We also like the Point & Figure chart, which shows a new ascending triple-top breakout buy signal with a $47.00 target. We are willing to go long at current levels but it might be prudent for readers to consider waiting and watching for a dip back toward $42.00 as a new bullish entry point. Broken resistance near $42 should become new support. Our target is the $47.00-48.00 range.

Picked on May 09 at $43.30
Change since picked: + 0.00
Earnings Date 05/03/05 (confirmed)
Average Daily Volume: 2.6 million

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Greenhill & Co - GHL - close: 34.11 chg: +1.85 stop: 31.49

Company Description:
Greenhill & Co., Inc. is an independent investment banking firm that (i) provides financial advice on significant mergers, acquisitions, restructurings and similar corporate finance matters and (ii) manages merchant banking funds and commits capital to those funds. Greenhill acts for clients located throughout the world from offices in New York, London and Frankfurt, and recently announced plans to open a Dallas office. (source: company press release)

Why We Like It:
The last several months have seen a ton of merger & acquisition activity, which sounds like a very healthy environment if you're an investment banker like GHL. The stock peaked in March but shares are bouncing from a recent test of support north of the $30.00 level. Today's gain was fueled by very strong volume and broke through its six-week descending channel and its 10 and 21-dma's. The technical oscillators are bullish and its MACD just produced a new buy signal today. Readers can choose to go long at current levels or wait for a dip back toward the $33.00-32.50 region and buy a bounce. Our short-term target is the $37.00-38.00 range.

Picked on May 09 at $34.11
Change since picked: + 0.00
Earnings Date 04/21/05 (confirmed)
Average Daily Volume: thousand

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Humana - HUM - close: 36.33 chg: +1.25 stop: 32.95

Company Description:
Humana Inc., headquartered in Louisville, Kentucky, is one of the nation's largest publicly traded health benefits companies, with approximately 7 million medical members located primarily in 15 states and Puerto Rico. Humana offers a diversified portfolio of health insurance products and related services -- through traditional and consumer-choice plans -- to employer groups, government-sponsored plans, and individuals. (source: company press release)

Why We Like It:
Healthcare stocks appear to be the market leaders. The HMO.X index is at or near new highs. Meanwhile shares of HUM just broke out to a new all-time high above its previous peak dating back to April 1991. We also like HUM because shares just broke through the top of its three-month trading range - a range where the stock was consolidating its late 2004 gains. The P&F chart also shows a new breakout buy signal on top of the previous buy signal that points to a $70 target. Readers can choose to go long now or look for a possible dip back toward the $35.00 level. Our short-term target is the $40.00 region.

Picked on May 09 at $36.33
Change since picked: + 0.00
Earnings Date 05/02/05 (confirmed)
Average Daily Volume: 1.3 million
 

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