Option Investor
New Plays
Printer friendly version
New Plays
Long Plays
Short Plays
BXC None

New Long Plays

Bluelinx - BXC - close: 12.47 change: +0.56 stop: 10.99

Company Description:
Headquartered in Atlanta, Georgia, BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America. Employing more than 3,600 people in North America, BlueLinx offers 10,000 products from over 750 suppliers to service more than 11,700 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers and home improvement retailers. The Company operates its distribution business from sales centers in Atlanta and Denver, and its network of more than 65 warehouses. (source: company press release or website)

Why We Like It:
This is a simple breakout play. BXC has been consolidating for months and today's 4.7% gain is a significant breakout over its ten-month trendline of resistance. Traders can choose to buy the stock here or look for a potential dip back toward the $12.00 level. The $12.00 mark has been resistance for the past month so it should now act as support. We're going to put our initial stop loss at $10.99 but more conservative traders may want to opt for something closer to 11.50. Our target will be the $15.00-15.50 range by late February through early March. FYI - the P&F chart points to a $25 target.

Picked on January 10 at $12.47
Change since picked: + 0.00
Earnings Date 03/09/06 (unconfirmed)
Average Daily Volume: 142 thousand


Evergreen Solar - ESLR - close: 12.25 change: +1.18 stop: 10.99

Company Description:
Evergreen Solar, Inc. develops, manufactures and markets solar power products using the Company's proprietary low-cost manufacturing technologies. The products provide reliable and environmentally clean electric power in global markets. Solar power applications include complete power systems for electric utility customers choosing to generate their own environmentally benign power, as well as wireless power for remote homes, water pumping, lighting and rural electrification. (source: company press release or website)

Why We Like It:
This is an aggressive bullish play. ESLR displayed plenty of relative strength today with a 10.6% gain on volume more than double its daily average. We normally don't like to chase a move this big but the rally represents a breakout over resistance near $12.00 and what looks like a bull flag pattern breakout. The MACD has produced a new buy signal. What makes this even more aggressive is the time frame. ESLR is expected to report earnings in early February. We don't want to hold over the report and that only gives us about four weeks. We would suggest long positions in the $11.50-12.50 range but would prefer to initiate bullish positions on a pull back into the $11.50-12.00 region. More conservative traders may want to put their stop closer to $11.50. Since we only have until early February we're going to target a rally into the $13.90-14.00 range.

Picked on January 10 at $12.25
Change since picked: + 0.00
Earnings Date 02/03/06 (unconfirmed)
Average Daily Volume: 2.4 million


Nexen Inc. - NXY - close: 51.20 change: +0.85 stop: 47.95

Company Description:
Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY. We are uniquely positioned for growth in the North Sea, deep-water Gulf of Mexico, the Athabasca oil sands of Alberta, the Middle East and offshore West Africa. We add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics, integrity and environmental protection.
(source: company press release or website)

Why We Like It:
We are going to add some more exposure to the oil sector. NXY has exposure to multiple regions around the world and not the least of which is the Canadian oil sands. Looking at the chart we see NXY consolidating under resistance at the $52.00 level. A breakout over $52.00 would produce a new Point & Figure chart buy signal. The technical picture is bullish and its MACD is already showing a new buy signal. We want to use a trigger at $52.11 to open positions. If triggered we'll target a rally into the $57.50-58.00 region by mid February.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/17/06 (unconfirmed)
Average Daily Volume: 424 thousand

New Short Plays

None today.

Premier Investor New Play Archives