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New Plays
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New Long Plays

Encore Capital Grp - ECPG - cls: 18.45 chg: +0.95 stop: 17.49

Company Description:
Encore Capital Group, Inc. is a systems-driven purchaser and manager of charged-off consumer receivables portfolios. (source: company press release or website)

Why We Like It:
Consumer debt is a huge business in this country and ECPG is one of the biggest names pursuing debt collections. The stock has been lost in a trading range for the last three months but that looks like it's about to change. This past Friday ECPG got an upgrade and that sent shares soaring through resistance at the $18.00 level and even higher past technical resistance at its simple 200-dma. We like the breakout but want to see some confirmation. Our strategy is to use a trigger at $18.76 to confirm the move. Currently the Point & Figure chart points to a $30.00 target. If we're triggered we'll target a move into the $21.00-21.50 range before its October earnings report.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/24/05 (unconfirmed)
Average Daily Volume: 112 thousand

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Forest Labs - FRX - close: 44.80 chg: +1.07 stop: 41.99

Company Description:
Forest Laboratories' growing line of products includes: Lexapro (escitalopram oxalate), an SSRI antidepressant indicated for the initial and maintenance treatment of major depressive disorder and for generalized anxiety disorder in adults; Namenda(memantine HCl), an N-methyl-D-aspartate (NMDA)-receptor antagonist indicated for the treatment of moderate to severe Alzheimer's disease; Benicar*(olmesartan medoxomil), an angiotensin receptor blocker indicated for the treatment of hypertension; Benicar HCT(olmesartan medoxomil hydrochlorothiazide), an angiotensin receptor blocker and diuretic combination product indicated for the second-line treatment of hypertension; Campral*(acamprosate calcium), a glutamate receptor modulator, indicated for the maintenance of abstinence from alcohol in patients with alcohol dependence who are abstinent at treatment initiation in combination with psychosocial support; and Combunox(TM)(Oxycodone HCl and Ibuprofen), an opioid and NSAID combination indicated for the short-term management of acute, moderate to severe pain. (source: company press release or website)

Why We Like It:
The biotech sector has been hot lately with the BTK index hitting new multi-year highs. Helping contribute to the overall move higher in the sector has been FRX, which has been steadily marching higher from its April lows. Yet recently FRX has been stuck under resistance at the $45.00 level these past two weeks. We suspect that the stock is poised to breakout over resistance and hit new eight-month highs of its own. There is always an extra risk when trading biotech stocks. The company could announce at any time that one of its drugs in development did or did not hit certain testing benchmarks and the stock could gap either direction. Traders need to be aware that there are extra risks involved. There does appear to be some good news lately. It looks like FRX and IVX may finally come to a resolution on their Lexapro lawsuit and settle. We are going to suggest that readers use a trigger to open bullish positions. Our trigger will be $45.11. Our target will be the $49.00-50.00 range. Our time frame is five weeks.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/17/05 (unconfirmed)
Average Daily Volume: 1.7 million

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Idex Corp - IEX - close: 44.43 change: +1.08 stop: 41.99

Company Description:
IDEX Corporation is the world leader in fluid-handling technologies for positive displacement pumps and metering products, dispensing equipment for color formulation, and other highly engineered products including fire suppression equipment, rescue tools and engineered band clamping systems. Its products are sold in niche markets to a wide range of industries throughout the world. (source: company press release or website)

Why We Like It:
Forbes recently ranked IEX as one of the top one hundred mid-cap stocks in America. That kind of press certainly doesn't hurt if you're bullish. We think the stock is technically poised to move higher. Shares broke through major resistance at the $42 level back in July and have been consolidating sideways in a $2.00 range ever since. Now that IEX has rested shares are breaking out to new highs again. Friday saw IEX push past the $44.00 level on above average volume, which also helped produce a new MACD buy signal. We're going to suggest new positions here above the $44 mark and target a move into the $47.50-48.00 range.

Picked on September 11 at $44.43
Change since picked: + 0.00
Earnings Date 10/20/05 (unconfirmed)
Average Daily Volume: 232 thousand
 

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