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New Plays
Long Plays
Short Plays
BOOM
HOLX  
NXTL  
OVEN  

New Long Plays

Dynamic Materials - BOOM - close: 39.89 chg: +0.05 stop: 37.95

Company Description:
Based in Boulder, Colorado, Dynamic Materials Corporation is a leading international metalworking company. Its products include explosion-welded clad metal plates and other metal fabrications for use in a variety of industries, including petrochemicals, refining, hydrometallurgy, aluminum smelting and shipbuilding. The Company operates two business segments: the Explosive Metalworking Group, which uses proprietary explosive processes to fuse dissimilar metals and alloys, and AMK Welding, which utilizes various technologies to weld components for use in power-generation turbines, as well as commercial and military jet engines. With more than 30 years of international experience, DMC has captured a commanding share of the worldwide market for explosion-welded clad metals. (source: company press release or website)

Why We Like It:
"BOOM" is what the markets heard back on November 12th, 2004. That was the sound of this stock exploding higher and it's probably been the death knell of many a bear since then. This is purely a technical play as we have not done the research to know if BOOM's fundamentals have changed so significantly as to warrant a move from $3.66 on November 11th, 2004 to a high near $45.00 back on June 1st, 2005 (we doubt they have). What we do know is that BOOM is one of the most heavily shorted stocks in the market. The latest data put short interest near 64% of its 2.57 million share float. This stock has seen huge short squeezes and we suspect it's on the cusp of another one. We are suggesting that readers use a trigger to go long above short-term resistance at the $42.00 level. Our entry point will be $42.01. We do not want to open the play if BOOM somehow gaps above our entry point. This is going to be a highly aggressive play and you need to play with stops. Our stop will be at $37.95 under the $38.00 level, which has bee support for the last couple of weeks. We are going to target a move into the $48.00-50.00 range.

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/05/05 (confirmed)
Average Daily Volume = 2.0 million

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Hologic - HOLX - close: 42.46 change: +2.28 stop: 38.69.

Company Description:
Hologic, Inc. is a leading developer, manufacturer and supplier of medical imaging systems dedicated to serving the healthcare needs of women, and a leading developer of state-of-the-art digital imaging technology for general radiography and mammography applications. Hologic's core business units are focused on osteoporosis assessment, mammography and breast biopsy, direct-to-digital X-ray for general radiography applications and mini C-arm imaging for orthopedic applications. (source: company press release or website)

Why We Like It:
We like HOLX as a bullish momentum play. The stock rebounded quickly during Thursday's session and the follow through higher on Friday was fueled by volume well above its average. The stock is now trading at multi-year highs not seen since 1996. The Point & Figure chart is bullish and points to a $67.00 target. We see potential resistance at its all-time highs near $49.00. We're going to target a move into the $47.00-49.00 range. The trick is the time frame. Honestly, we're not sure HOLX can reach our target before the company reports earnings later this month. There are too many unknown variables during an earnings report so we'll plan on closing the play ahead of the announcement. Traders may feel better about an entry if HOLX dips back toward the 41.00-41.50 range before initiating positions.

Picked on July 10 at $42.46
Change since picked: + 0.00
Earnings Date 07/27/05 (unconfirmed)
Average Daily Volume: 220 thousand

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Nextel Comm. - NXTL - close: 32.93 change: +0.66 stop: 31.49

Company Description:
Nextel Communications, a FORTUNE 200 company based in Reston, Va., is a leading provider of fully integrated wireless communications services and has built the largest guaranteed all-digital wireless network in the country covering thousands of communities across the United States. Today 95 percent of FORTUNE 500 companies are Nextel customers. Nextel and Nextel Partners, Inc. currently serve 297 of the top 300 U.S. markets where approximately 263 million people live or work. (source: company press release or website)

Why We Like It:
One thing's for sure... we don't have to worry about liquidity with NXTL. The stock tends to trade almost 10 million shares a day. NXTL broke out over major resistance in the $30.00-30.50 region back in early June. After the rally ran out of steam on June 14th the stock has been consolidating sideways ever since. We suspect that NXTL is poised to breakout over the top of its trading range at the $33.00 mark. Technical oscillators are bullish and its MACD is nearing a new buy signal. The P&F chart is also bullish and points to a $53 target. Our biggest concern here is the time frame. We do not want to hold over NXTL's July 21st (unconfirmed) earnings report. Our plan is to use a trigger at $33.10 to catch a breakout over resistance. Our target will be the $37.00-37.50 range.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/21/05 (unconfirmed)
Average Daily Volume: 9.9 million

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TurboChef Tech. - OVEN - close: 19.10 chg: +1.04 stop: 17.49

Company Description:
TurboChef is engaged in designing, developing and marketing its proprietary rapid cook technologies. TurboChefs proprietary rapid cook ovens, which require no ventilation, employ a proprietary combination of high speed forced air and microwave energy to "cook to order" a variety of food products at faster speeds and to quality standards comparable, and in many instances superior to, other conventional commercial and residential ovens currently available. (source: company press release or website)

Why We Like It:
It looks like that OVEN is once again undergoing a short squeeze. The stock has made a strong run already when it broke out from its bearish trend back in early June. After peaking at the $20.00 mark the stock has spent the last three weeks consolidating into a narrowing, neutral pennant formation. Friday's breakout on big volume appears to be the beginning of the next leg higher. Fueling the move are probably panicked shorts. According to the latest data short interest was about 40 percent of OVEN's 13 million share float. We do consider this an aggressive play and more conservative traders may feel more comfortable waiting on a potential dip back toward $18.50 before going long the stock. The P&F chart is very bullish and points to a $38.50 target. We are going to target a move into the $21.00-21.50 range.

Picked on July 10 at $19.10
Change since picked: + 0.00
Earnings Date 08/08/05 (unconfirmed)
Average Daily Volume: 632 thousand
 

New Short Plays

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