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Lear Corp - LEA - close: 36.37 chg: -0.97 stop: 38.51

Company Description:
Lear Corporation, a Fortune 500 company headquartered in Southfield, Mich., USA, focuses on integrating complete automotive interiors, including seat systems, interior trim and electrical systems. With annual net sales of $17 billion in 2004, Lear is one of the world's largest automotive interior systems suppliers. The company's world-class products are designed, engineered and manufactured by more than 110,000 employees in 34 countries. (source: company press release)

Why We Like It:
It's been a tough year if you are in the automobile industry and equally tough if you're a supplier like LEA. The stock has been sinking for months but we see what looks like a bear-flag consolidation over the last six weeks or so. The recent market sell-off helped push LEA through the bottom of this bear flag pattern, which should initiate the next leg down. Shareholder confidence is probably pretty low considering that nine out of the last ten brokerage rating comments were negative. Technically we see a new sell signal in LEA's MACD indicator and its P&F chart is very bearish with a $7.00 target. We're going to target a drop toward the $31-30 range but we do not plan on holding over LEA's late July earnings report.

Picked on June 26 at $36.37
Change since picked: + 0.00
Earnings Date 07/29/05 (unconfirmed)
Average Daily Volume: 1.4 million 


Playtex - PYX - close: 10.17 change: -0.29 stop: 10.75

Company Description:
Playtex Products, Inc. is a leading manufacturer and distributor of a diversified portfolio of Feminine Care, Infant Care and Skin care products, including Playtex tampons, Playtex infant feeding products, Diaper Genie, Banana Boat, Wet Ones, Baby Magic, Mr. Bubble and Playtex gloves. (source: company press release)

Why We Like It:
After months of slowly churning higher it looks like PYX is finally showing some weakness. The stock has been struggling with resistance at the $11.00-11.10 range for the past four weeks. Now the recent market sell-off has pushed PYX below support at the $10.40 level and its simple 50-dma. It is true that PYX's P&F chart is pretty bullish but that doesn't mean PYX can't consolidate some of its eight months of gains. We think PYX could pull back toward the $9.00 region, which would be a 38.2 percent Fibonacci retracement of its October-May rally. We would initiate positions here at current levels. Some traders might want to look for a failed rally under $10.40 first. Other traders might want to wait for PYX to breakdown under the $10.00 mark first before initiating positions. Our official target will be the $9.10-9.00 range.

Picked on June 26 at $10.17
Change since picked: + 0.00
Earnings Date 08/01/05 (unconfirmed)
Average Daily Volume: 466 thousand

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