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Maverick Tube - MVK - close: 30.44 chg: -1.36 stop: 32.51

Company Description:
Maverick Tube Corporation is a St. Louis, Missouri, based manufacturer of tubular products in the energy industry for exploration, production, and transmission, as well as industrial tubing products (steel electrical conduit, HSS, standard pipe, pipe piling, and mechanical tubing) used in various applications. (source: company press release or website)

Why We Like It:
When you consider the energy industry (oil & gas) and how the record high prices has pushed the sector to new highs you assume that business is booming. So why is it that MVK's share price is not reflecting what should be a very strong time for the company. As a supplier of pipes and other materials to the energy sector we'd look for MVK to be trading near new highs.

The energy (oil & gas) business is booming right now with crude and gas hitting new highs on a daily basis. So why aren't shares of MVK, a supplier to the sector, not pacing along? Shares peaked back in February and March and struggled with new resistance near $35 back in June and August. More recently the stock had pulled back toward technical support at its simple and exponential 200-dma's. Unfortunately for shareholders MVK broke this support on Tuesday after the company announced that its President and COO had resigned. Wall Street hates the unknown and usually when a major exec suddenly quits they expect more problems ahead. Technically speaking volume on today's breakdown was huge and the stock also fell through its three-month trendline of support. Both developments suggest more weakness ahead. We're going to suggest shorts here under $31.00 with a target at $27.00. If MVK does not produce enough follow through in the next couple of days we will re-evaluate.

Picked on August 30 at $30.44
Change since picked: + 0.00
Earnings Date 10/25/05 (unconfirmed)
Average Daily Volume: 741 thousand

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Yahoo! Inc. - YHOO - close: 33.18 change: -0.50 stop: 34.81

Company Description:
Yahoo! Inc. is the No. 1 Internet brand globally and the most trafficked Internet destination worldwide. Yahoo! provides online products and services essential to consumers' lives, and offers a full range of tools and marketing solutions for businesses to connect with Internet users around the world. Yahoo! is headquartered in Sunnyvale, Calif. (source: company press release or website)

Why We Like It:
The future might look a little cloudy for YHOO with up and coming rival Google (GOOG) breathing down its neck. The recent announcement (August 22nd) that GOOG was going to launch a competing chat client didn't help matters. Of course investors were already turning sour on YHOO after the company failed to impress with its earnings report. The stock gapped down dramatically following its July earnings results. The overall picture looks bearish and its weekly chart displays what looks like a double-top pattern near the $40.00 level. Short-term we think YHOO could trade to $30.50 over the next four to six weeks. This target lines up with the P&F chart, which points to a $30 target. The stock does have support at $32.65 and more conservative traders might feel a lot more comfortable waiting for YHOO to breakdown below this level before initiating positions.

Picked on August 30 at $33.18
Change since picked: + 0.00
Earnings Date 10/18/05 (unconfirmed)
Average Daily Volume: 17.1 million
 

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