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Verifone Holdings - PAY - close: 23.67 chg: +0.55 stop: 21.95

Company Description:
VeriFone Holdings, Inc. ("VeriFone"), a global leader in secure electronic payment technologies, provides expertise, solutions and services for today with a migration strategy for tomorrow. VeriFone delivers solutions that add value to the point of sale, resulting in improved merchant retention and the generation of new sources of revenue for its partners and customers. VeriFone solutions are specifically designed to meet the needs of vertical markets including financial, retail, petroleum, government and healthcare.
(source: company press release or website)

Why We Like It:
Last month PAY broke out from a multi-month consolidation pattern and set a string of new yearly highs. After testing round-number resistance near $25.00 traders have spent the last several days locking in profits. Today looks like a new turning point for PAY. The stock dipped back toward previous resistance, now new support near $22.00, which also happens to be near technical support at its simple and exponential 200-dma's. The sharp intraday bounce from the $22 level looks like a short-term entry point for new longs. We're going to suggest longs with the stock above $23.00. More conservative traders may want to plan an exit at the $25 level, which is resistance. We suspect that PAY could breakout over the $25 level especially if the broader market continues higher with expectations of the seasonal Santa Claus rally. We are going to set an optimistic target in the $26-27 range. The biggest challenge with this play is the time frame. We want to exit ahead of PAY's December 1st earnings report. That gives us less than two whole weeks. If we do not see a move over $24.00 in the next two or three sessions we'll probably exit early.

Picked on November 17 at $23.67
Change since picked: + 0.00
Earnings Date 12/01/05 (confirmed)
Average Daily Volume: 304 thousand
 

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