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AHM None
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Amer. Home Mtg Invest. - AHM - cls: 36.34 chg: +0.79 stop: 34.95

Company Description:
American Home Mortgage Investment Corp. is a mortgage real estate investment trust (REIT) focused on earning net interest income from self-originated mortgage-backed securities, and through its taxable subsidiaries, from originating and servicing mortgage loans for institutional investors. Mortgages are originated through a network of loan production offices as well as through mortgage brokers and are serviced at the Company's Irving, Texas servicing center. (source: company press release)

Why We Like It:
Trading in AHM over the last year has been a pretty rocky affair but it looks like the stock has finally found a more durable up trend. Shares recently broke through significant resistance in the $34.00, 34.50 and 35.00 levels in early June. Now shares look ready for another leg higher following its eight-day consolidation. The Point & Figure chart is bullish and currently points to a $43.00 target. Given the DJIA's bullish breakout on Friday we feel that a slightly more aggressive entry point could work. That's why we're suggesting long positions at current level's given Friday's gain in AHM. More conservative traders may want to strongly consider waiting for AHM to push past the $37.00 level and produce a new yearly high. A breakout over $37.00 should signal an end to the current trading range and probably spark some short covering. The latest data showed that short interest measured some 16.4 percent of AHM's 35 million share float. We are starting the play with a stop loss under the $35.00 level. More aggressive traders may want a wider stop. We do not plan on holding over AHM's late July earnings report so that gives us about five weeks for the stock to reach our $39.50 price target.

Picked on June 19 at $36.34
Change since picked: + 0.00
Earnings Date 07/25/05 (unconfirmed)
Average Daily Volume: 445 thousand

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Smurfit-Stone Cont. - SSCC - close: 11.68 chg: +0.37 stop: 10.99

Company Description:
Smurfit-Stone Container Corporation (NASDAQ: SSCC) is the industry's leading integrated manufacturer of paperboard and paper-based packaging. Smurfit-Stone is the leading producer of containerboard, including white top linerboard; corrugated containers; multi-walled and specialty bags; and clay-coated recycled boxboard. SSCC is the world's largest paper recycler, annually processing and selling more than 6.5 million tons. In addition, Smurfit-Stone is a leading producer of solid bleached sulfate, folding cartons, flexible packaging, labels, and point-of-purchase displays. With approximately 38,600 employees working at nearly 260 manufacturing facilities, Smurfit-Stone can provide paperboard and packaging solutions for any customer, large or small, anywhere in North America. (source: company website)

Why We Like It:
Wow! The selling in SSCC has been painful. Over the last three months the stock has dropped from the $17.00 region to $11.00 (actually 10.61). It's probably not a coincidence that the Point & Figure chart's bearish target was the $11.00 level. Now that its P&F target has been hit we're starting to see signs of a bounce. The action in SSCC over the last four weeks looks like a bottoming-type of consolidation. Volume on Friday's rally was way above average and pushed SSCC through the top of its four-week trading range. SSCC has also broken out through its three-month trendline of resistance (see chart). Combine all these factors together and SSCC looks like a decent bullish candidate but we'd have to label this as a speculative play. We are willing to go long at current levels but readers may want to review some alternative entry points. More conservative traders may want to wait for SSCC to clear the $12.00 level and or its 40-dma near $12.00 or its 50-dma near 12.43. Another alternative would be to look for a dip into the $11.40-11.20 range. We are going to target a move into the $13.75-14.00 range but we do not plan on holding over SSCC's July earnings date.

Picked on June 19 at $11.68
Change since picked: + 0.00
Earnings Date 07/22/05 (unconfirmed)
Average Daily Volume: 2.4 million
 

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