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O M I Corp - OMM - close: 17.20 change: -0.16 stop: 18.55

Company Description:
OMI is a major international owner and operator of crude oil tankers and product carriers. Its fleet currently comprises 46 vessels, including 16 Suezmaxes and 30 product carriers, aggregating approximately 3.8 million deadweight tons ("dwt"), all of which are double hull. The Company has on order five product carriers for delivery in the first half of 2006 and one Suezmax being delivered to it on a seven-year time charter in September, 2005. (source: company press release or website)

Why We Like It:
Normally one might think that crude oil tanker stocks might done very well considering the record highs in crude oil prices. If demand is so tight that oil prices are rocketing higher then demand should be strong for transporting that oil, right? It is true that business is good for the transport industry. OMM's recent earnings report came in very strong. What investors seem to be worried about is an influx of new tankers in the next few years. Naturally more tankers increases the supply of ships to transport crude and thus could bring down prices. Looking at the chart of OMM one can see that the recent sell-off began at its earnings report on July 25th. The stock broke down below technical support at its simple 200-dma and then quickly broke support at $18.00 and its exponential 200-dma in the following week. Overall the action over the last few weeks has produced a bull trap pattern on its P&F chart that now points to a $12.50 target. We are suggesting shorts with OMM under the $18.00 level and we're going to target a drop toward the $15.25-15.00 range. Our stop loss at $18.55 is just north of the simple 200-dma, which should now act as resistance.

Picked on August 14 at $17.20
Change since picked: + 0.00
Earnings Date 07/25/05 (confirmed)
Average Daily Volume: 1.4 million

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PAR Tech - PTC - close: 30.35 chg: -0.60 stop: 32.01

Company Description:
PAR Technology Corporation is a leading provider of professional services and enterprise business intelligence technology solutions. PAR develops, markets and supports hardware and software products that improve the ability of hospitality business professionals to make timely, fact-based business decisions. The Company is the world's largest supplier of Point-of-Sale systems to the quick service restaurant market with over 40,000 systems installed in more than 100 countries. PAR is also a leader in providing computer based system design and engineering services to the Department of Defense and other Federal Government Agencies. (source: company press release or website)

Why We Like It:
Shares of PTC have done pretty well this year but investors sold the news hard when PTC reported earnings on July 25th. Since then the stock has been somewhat volatile until eventually the profit taking pushed PTC through its bullish up trend. The overall effect was a strong sell signal from a wedge or triangle pattern on its P&F chart. These tend to be very successful patterns to trade. Currently shares just produced what looks like an oversold bounce in a tight bear-flag pattern. We are suggesting a trigger at $29.40 to catch a breakdown from this bear-flag pattern. Our target is the $25.25-25.00 range but more conservative traders may want to target the 100-dma near $26.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/27/05 (confirmed)
Average Daily Volume: 159 thousand
 

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