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ERICY AIRT

New Long Plays

LM Ericsson - ERICY - close: 35.19 chg: +0.38 stop: 32.99

Company Description:
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. (source: company press release or website)

Why We Like It:
This is both a momentum play and a technical breakout play. Shares of ERICY have been consistently climbing higher over the past few months in what looks like a rising channel. Today's breakout over the $35.00 level marks a new three-year high for the stock. Plus, it confirms the recent breakout through resistance at the top of ERICY's massive gap down back in 2002. ERICY's Point & Figure chart also points higher with a $49.00 target. We are suggesting bullish positions over the $35.00 level with an eight-week target in the $39.50-40.00 range. More patient traders might want to wait for another dip before considering new positions. We're going to start the play with our stop loss near the simple 50-dma.

Picked on August 03 at $35.19
Change since picked: + 0.00
Earnings Date 07/21/05 (confirmed)
Average Daily Volume: 1.9 million
 

New Short Plays

Air T, Inc. - AIRT - close: 13.84 change: -0.34 stop: 15.01

Company Description:
AirT, through its subsidiaries, provides overnight air-freight service to the express delivery industry and manufactures and services aviation and other specialized equipment. AirT is one of the largest small aircraft air cargo operators in the United States and currently operates a fleet of single and twin-engine turbo-prop aircraft nightly in the eastern half of the United States and Canada, South America, Puerto Rico and the Virgin Islands. (source: company press release or website)

Why We Like It:
As an air courier the high-cost of oil and thus jet fuel has got to be putting pressure on AIRT's margins. We also like AIRT as a bearish candidate because shares have been under performing their peers in the airline sector. The stock's six-week sideways consolidation has broken down to new relative lows. Its Point & Figure chart looks very bearish and points to a $10.00 target. Our initial target is the January 2005 lows near $12.00 (actually 12.10-12.00) but we wouldn't be surprised to see AIRT trade lower. Traders can choose to short the stock here or look for another bounce and failed rally under the $14.50 level. It is worth knowing that AIRT has a very small float of just 2.51 million shares but we do not see very much short interest.

Picked on August 03 at $13.84
Change since picked: + 0.00
Earnings Date 06/17/05 (confirmed)
Average Daily Volume: 289 thousand
 

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