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MOT None
PCU  
SIRI  

New Long Plays

Motorola - MOT - close: 22.79 change: +0.64 stop: 21.78

Company Description:
Motorola is a Fortune 100 global communications leader that provides seamless mobility products and solutions across broadband, embedded systems and wireless networks. In your home, auto, workplace and all spaces in between, seamless mobility means you can reach the people, things and information you need, anywhere, anytime. Seamless mobility harnesses the power of technology convergence and enables smarter, faster, cost-effective and flexible communication. Motorola had sales of US $31.3 billion in 2004. (source: company press release or website)

Why We Like It:
MOT makes the play list as a momentum/relative strength candidate. The stock has been on a steady march higher. A quick look at the chart below and you'll see how traders have been buying the dips to its trendline of support. This happened again on Thursday this past week as MOT tested its trendline and round-number support near $22.00. Friday's follow through bounce higher suggests this is a new bullish entry point. However, we want readers to keep in mind that our outlook for the markets over the next couple of weeks is stormy. MOT has been showing lots of strength and effectively ignoring most market volatility but there's no guarantee it will continue to do so. If MOT fails to breakout over the $24.00 level we'll quickly exit. We're suggesting stops under Thursday's low. Our target is the $24.75-25.00 range. We will not hold over the October earnings report currently estimated to come out around October 10th.

Picked on September 25 at $22.79
Change since picked: + 0.00
Earnings Date 10/10/05 (unconfirmed)
Average Daily Volume: 19.2 million

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Southern Peru Copper - PCU - cls: 50.92 chg: +0.91 stop: 49.25

Company Description:
Measured by reserves SPCC is the world's largest publicly traded copper mining company; and the world's fifth largest copper mining company; and the world's fifth largest copper mining company based on our 2004 sales. Also, we are the third largest copper smelting operation and the fifth largest copper refining company. We are also among the world's largest producers of molybdenum, silver and zinc. All of our mining operations are located in Peru and Mexico and we conduct exploration activities in Peru, Mexico and Chile. (source: company press release or website)

Why We Like It:
Copper prices soared to yet another new multi-year high on Friday. Analysts believe that the rebuilding process for hurricane Katrina and Rita will put big demands on a commodity that was already running low. This bullish environment is helping push copper producers like PD and FCX to new highs. We like PCU because the stock is not so overbought and looks poised to play "catch up" with its peers. Technically PCU has produced a recent double-bottom type of pattern and is currently consolidating just north of its simple 200-dma. We're willing to suggest longs here above the $50.00 level but more conservative traders might want to wait for a breakout over the $52 level. Our target is the $54.85-55.00 range.

Picked on September 25 at $50.92
Change since picked: + 0.00
Earnings Date 10/17/05 (unconfirmed)
Average Daily Volume: 765 thousand

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Sirius Sat.Radio - SIRI - close: 6.70 chg: +0.11 stop: 6.39

Company Description:
SIRIUS delivers more than 120 channels of the best commercial-free music, compelling talk shows, news and information, and the most exciting sports programming to listeners across the country in digital quality sound. SIRIUS offers 65 channels of 100% commercial-free music, and features over 55 channels of sports, news, talk, entertainment, traffic and weather for a monthly subscription fee of only $12.95. SIRIUS radios are currently offered in vehicles from Audi, BMW, Chrysler, Dodge, Ford, Infiniti, Jaguar, Jeep, Land Rover, Lexus, Lincoln-Mercury, Mazda, Mercedes-Benz, MINI, Nissan, Scion, Toyota, Porsche, Volkswagen and Volvo. (source: company press release or website)

Why We Like It:
The recent market pull back has left its mark on shares of SIRI. The stock has fallen back under support/resistance at the $7.00 level but selling pressure seems to be fading as it nears support at $6.40. While many analysts are relatively bullish on SIRI, especially for the fourth quarter this is probably a bit too early to be planning for a big fourth quarter surge higher. However, we do think SIRI is short-term oversold and its short-term technicals are starting to tilt higher. If the markets produce a hurricane relief rally this week then SIRI could rebound back toward the $7.30 region. We'll put a stop loss at $6.39 (under support) and target a move towards $7.25-7.35. However, if we do not see any follow through early next week on Friday's bounce we'll quickly pull the plug. Plus, if SIRI takes too long trying to breakout over the $7.00 level we'll pull the plug there too.

Picked on September 25 at $ 6.70
Change since picked: + 0.00
Earnings Date 10/27/05 (unconfirmed)
Average Daily Volume: 35.0 million
 

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