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SFL None

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Ship Fincl Intl - SFL - close: 19.34 change: +0.68 stop: 18.19

Company Description:
Ship Finance International Limited is a major, Bermuda based, tanker company. The fleet, which is one of the largest and most modern in the world, consists of 23 VLCC tankers and 24 Suezmax tankers (of which 8 are Combination Carriers), totaling 10.5 million dead weight tons. 13 of the VLCC tankers and 16 of the Suezmax tankers are of double hull construction, with the remainder being modern single hull or double sided vessels built since 1990. (source: company press release)

Why We Like It:
We are adding SLF to the play list as a bullish candidate based on its bullish technical breakout today. Normally we don't like to play a stock this close to its earnings report, which in SFL's case came out this morning. Yet today's rally and relative strength as shares of SFL rebound from a test of support near the $18.25 level looks like a bullish entry point worth looking more closely at. Volume was almost double the norm and SFL has broken through its six-month trendline of lower highs. We are willing to go long at current levels with a target in the $21.80 to $22.00 range. More conservative traders can choose to wait for SFL to trade over its simple 50-dma near $19.60 before going long or look for a dip back toward $19.00 and then buy a bounce. Due to SFL's bearish P&F chart we would label this a slightly more aggressive/risky play.

Picked on May 31 at $19.34
Change since picked: + 0.00
Earnings Date 05/31/05 (confirmed)
Average Daily Volume: 344 thousand
 

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