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Network Appl. - NTAP - close: 25.12 change: +0.86 stop: 22.99

Company Description:
Network Appliance is a world leader in unified storage solutions for today's data-intensive enterprise. Since its inception in 1992, Network Appliance has delivered technology, product, and partner firsts that simplify data management. (source: company press release or website)

Why We Like It:
The market is finally starting to bounce from a very bearish start to the fourth quarter. Leading the way has been tech stocks. One of those leaders is NTAP. The stock has resisted much of the market's weakness over the last couple of weeks. Instead NTAP continued to build its base of sideways consolidation between $22.50 and $24.50. Thursday saw shares produce a bullish engulfing pattern and Friday's rally helped confirm the bullish reversal with volume coming in above average. What we really like about NTAP is that this is a bounce from its long-term trendline of support dating back to late 2002. We would suggest new bullish plays as long as the stock trades above $24.50. Our target is the $29.00-30.00 range. The first challenges to this rally will be potential resistance near $26 with its 100-dma and exponential 200-dma. Secondary resistance exists at its simple 200-dma. We will plan to exit ahead of its November earnings report.

Picked on October 16 at $25.12
Change since picked: + 0.00
Earnings Date 11/16/05 (unconfirmed)
Average Daily Volume: 5.9 million

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Sun Microsystems - SUNW - close: 3.98 chg: +0.02 stop: 3.90

Company Description:
A singular vision -- "The Network Is The Computer"(TM) -- guides Sun in the development of technologies that power the world's most important markets. Sun's philosophy of sharing innovation and building communities is at the forefront of the next wave of computing: the Participation Age. Sun can be found in more than 100 countries and on the Web at sun.com. (source: company press release or website)

Why We Like It:
This is purely a speculative play. The markets seemed unimpressed by the over-hyped press announcement between SUNW and GOOG on October 4th. However, it does look like SUN is on the verge of pushing back through the top of its $3.50-4.00 trading range where it has been stuck for most of this past year. Now that the NASDAQ is helping lead the markets higher we are willing to bet that SUNW will follow the crowd. Of course if the markets fail to produce any follow through on the recent rally we'll want to exit quickly. We're going set a trigger at $4.05 to open the play and we'll use a stop loss at $3.90 to limit our risk. If SUNW hits our trigger at $4.05 and opens the play we'll target a move into the $4.40-4.50 range before its November 1st earnings report. That target may be overly optimistic and if so we'll adjust it.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/01/05 (unconfirmed)
Average Daily Volume: 40.4 million
 

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