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New Short Plays

Interoil Corp - IOC - close: 23.24 change: -3.00 stop: 25.55

Company Description:
InterOil Corporation is developing a Fully-Integrated Niche Energy Company in Papua New Guinea. The Company has positioned itself to Own Assets through the Entire Value Chain - from Well-Head to Retail. (source: company website)

Why We Like It:
IOC appears to have completely disconnected from the rest of the oil sector. Shares peaked in February-March and have been sliding ever since, which looks pretty bearish compared to the strength in crude oil and the rest of the industry. Now after six weeks of consolidating above support in the $24.50-25.00 range the stock just broke down on huge volume about three times the average daily volume. This technical breakdown also helped produce a new triple-bottom breakdown sell signal on its P&F chart, which now points to a $14.00 target. We're willing to (hypothetically) short the stock here with a short-term target near the $20.00 level. Readers can choose to open plays here or hope for an oversold bounce back toward what should be resistance near $24.50. A failed rally under $24.50 would be the preferred entry point but IOC may not offer it. We'll set the target in the $20.50-20.00 range.

Picked on June 07 at $23.24
Change since picked: - 0.00
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume: 352 thousand


ManTech Intl - MANT - close: 28.42 change: -1.16 stop: 30.05

Company Description:
Headquartered in Fairfax, Virginia, ManTech International Corporation is a leading provider of innovative technologies and solutions for mission-critical national security programs for the Intelligence Community and the Departments of Defense, State, Homeland Security, Justice and other U.S. federal government customers. ManTech's expertise includes systems engineering, systems integration, technology and software development, enterprise security architecture, information assurance, intelligence operations support, network and critical infrastructure protection, information technology, communications integration and engineering support. With 2004 annual revenues of $842 million and more than 5,500 highly qualified employees, the company operates in the United States and 40 countries worldwide. (source: company press release)

Why We Like It:
Longer-term we're actually bullish on MANT but the stock's failed rally-bearish reversal today looks like an entry point for a short-term pull back. The stock has been consolidating sideways under resistance at the $30.00 mark for just over two weeks. Today's early breakout quickly reversed and the move has produced a bearish engulfing candlestick, which is normally seen as a bearish reversal. Volume was very strong at almost four times the norm suggesting more weakness ahead. We are targeting a short-term move into the $25.75-25.50 range. At that point our bias will probably turn bullish since the $25.00-25.50 region should be strong support for MANT. More conservative traders can wait for confirmation of the bearish reversal with a drop below the $28.00 mark.

Picked on June 07 at $28.42
Change since picked: - 0.00
Earnings Date 08/15/05 (unconfirmed)
Average Daily Volume: 165 thousand

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