Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
None YELL

New Long Plays

None today.
 

New Short Plays

Yellow Roadway - YELL - close: 46.88 chg: -0.60 stop: 50.01

Company Description:
Yellow Roadway Corporation, a Fortune 500 company, is one of the largest transportation service providers in the world. Through its brands including Yellow Transportation, Roadway Express, Reimer Express, USF, New Penn Motor Express and Meridian IQ, Yellow Roadway provides a wide range of asset and non-asset-based transportation services. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, Yellow Roadway Corporation employs approximately 70,000 people. (source: company press release or website)

Why We Like It:
The consolidation in the transportation sector has turned into a bearish, descending channel. Investors are worried about what rising fuel costs will do to profit margins and sales. Shares of trucking company YELL are leading the group lower. The stock broke down below support near $47.50-48.00 about a week ago. This move produced a new quadruple-bottom breakdown sell signal on its Point & Figure chart that now points to a $34 target. We like the failed rally at $48.00 on Friday and believe traders can use it as a new bearish entry point. Our target is going to be the $42.00-40.00 range. We are starting the play with a wide stop but once YELL trades under $46 again we'll probably adjust the stop lower.

Picked on September 04 at $46.88
Change since picked: + 0.00
Earnings Date 10/27/05 (unconfirmed)
Average Daily Volume: 1.2 million
 

Premier Investor New Play Archives