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Alexander & Baldwin - ALEX - cls: 52.41 chg: +1.41 stop: 49.49

Company Description:
A&B's major lines of business are ocean transportation (Matson Navigation Company, Inc.); property development and management (A&B Properties, Inc.); and food products (Hawaiian Commercial & Sugar Company, Kauai Coffee Company, Inc.). (source: company press release or website)

Why We Like It:
The execs at ALEX have a rather diverse company to run with their hands in property development and management in the beautiful state of Hawaii in addition to their shipping business and super and coffee interests. Wall Street seems to have faith in the company as the stock has been on a tear these past few months. Investors didn't waste much time buying the dip near $48.50, which coincided perfectly with a 38.2 percent Fibonacci retracement of its April-July run up. A positive article in Barron's a few days ago didn't hurt and helped spark a breakout in shares from their five-week consolidation. Now technicals are turning positive and ALEX looks poised to continue its next leg higher. Currently the Point & Figure chart points to an $83 target. We are suggesting bullish positions here above $50.00 with a target in the $56.00-57.00 range.

Picked on August 31 at $52.41
Change since picked: + 0.00
Earnings Date 07/27/05 (confirmed)
Average Daily Volume: 310 thousand

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Ryerson Tull - RT - close: 20.54 change: +0.71 stop: 18.99

Company Description:
Ryerson Tull, Inc. is North America's leading distributor and processor of metals, with first half 2005 revenues of $3.1 billion. The company services customers through a network of service centers across the United States and in Canada, Mexico, and India. (source: company press release or website)

Why We Like It:
Today's breakout in shares of RT over resistance near the $20.00 level has pushed the stock to new four-year highs. The move is probably a bet by investors that the company will benefit from the massive rebuilding effort following hurricane Katrina. Technically we like it because today's move is a breakout from its five-week trading range and volume came in above average. Short-term oscillators are positive and its MACD is nearing a new buy signal. Plus, the P&F chart is very bullish with a $26 target. Let us not forget to mention that the latest data put short interest at close to 27% of the float so RT could easily see a short-squeeze here! We are suggesting bullish positions here above $20.00. Whether you choose to go long here or hope for a pull back toward the $20.00 level, which should now act as support is up to you. Our target is the $23.50-24.00 range.

Picked on August 31 at $20.54
Change since picked: + 0.00
Earnings Date 07/28/05 (confirmed)
Average Daily Volume: 486 thousand
 

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