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New Plays
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GLW None
KOMG  
MENT  

New Long Plays

Corning Inc. - GLW - close: 20.11 chg: +0.42 stop: 18.99

Company Description:
Corning Incorporated is a diversified technology company that concentrates its efforts on high-impact growth opportunities. Corning combines its expertise in specialty glass, ceramic materials, polymers and the manipulation of the properties of light, with strong process and manufacturing capabilities to develop, engineer and commercialize significant innovative products for the telecommunications, flat panel display, environmental, semiconductor, and life sciences industries. (source: company press release or website)

Why We Like It:
The recent bounce from support near the $19.00 level looks like a new bullish entry point. GLW already has a four-week trend of higher lows and its short-term oscillators have turned upward again. The P&F chart also shows a double-top breakout buy signal that points to a $26 price target. We are going to suggest longs with GLW above $20.00 and target a run to resistance at $22.00. Our official target is the $21.90-22.00 range. Our time frame is seven weeks.

Picked on November 13 at $20.11
Change since picked: + 0.00
Earnings Date 01/25/06 (unconfirmed)
Average Daily Volume: 11.8 million

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Komag - KOMG - close: 28.77 change: +0.72 stop: 26.99

Company Description:
Founded in 1983, Komag is a leading independent supplier of thin-film disks, the primary high-capacity storage medium for digital data. Komag leverages the combination of its world-class U.S. research and development center and Malaysian manufacturing operations to produce disks that meet the high-volume, stringent quality, low cost and demanding technology needs of its customers. By enabling rapidly improving storage density at ever-lower cost per gigabyte, Komag seeks to create extraordinary value for consumers of computers, enterprise storage systems and electronic appliances such as digital video recorders, game boxes and consumer electronic storage systems. (source: company press release or website)

Why We Like It:
The DDX hard drive index is breaking out to new 52-week highs and shares of KOMG look ready to try and catch up to the index. The stock bounced near support at the $25 region two weeks ago and now after several days of consolidating sideways we're seeing KOMG inch higher. Technical oscillators are turning bullish and KOMG has broken its two-month trend of lower highs. This looks like a new entry point but volume was very low on Friday and we want to see some confirmation. That's why we are going to suggest a trigger at $29.21 to open long positions. More conservative traders may want to wait for KOMG to trade over the $30.00 mark and its 50-dma (29.90) before initiating long positions since either level could act as overhead resistance. If we are triggered we'll target a rise to the $34.00-35.00 range. Our time frame is seven weeks.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/25/06 (unconfirmed)
Average Daily Volume: 1.3 million

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Mentor Graphics - MENT - close: 8.87 chg: -0.06 stop: 8.49

Company Description:
Mentor Graphics Corporation is a world leader in electronic hardware and software design solutions, providing products, consulting services and award-winning support for the world's most successful electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of about $700 million and employs approximately 3,950 people worldwide. (source: company press release or website)

MENT has reversed course and now looks poised to breakout through the top of its three and a half month trading range. The stock has butted up against resistance at the $9.00 level twice this month and shares are coiling more tightly between the $8.50 and $9.00 levels. We think MENT could push higher and we want to capture the move. We'll suggest a trigger to go long at $9.05. If triggered we'll target a run into the $9.95-10.00 range.

Picked on October xx at $xx.xx <-- see Trigger
Change since picked: + 0.00
Earnings Date 01/19/06 (unconfirmed)
Average Daily Volume: 713 thousand
 

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