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PTEN 
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New Long Plays

Advance Auto Parts - AAP - close: 44.37 chg: +0.01 stop: 43.69

Company Description:
Headquartered in Roanoke, Va., Advance Auto Parts is the second-largest retailer of automotive parts, accessories batteries and maintenance items in the United States based on sales and store count. As of October 8, 2005, the company had 2,829 stores in 40 states, Puerto Rico and the Virgin Islands. The company serves both the do-it-yourself and professional installer markets. (source: company press release or website)

Why We Like It:
The consolidation pattern in shares of AAP has a bullish twist to it. The rising trend of higher lows suggests that shares will eventually breakout over resistance at the $45.00 level. The Point & Figure chart is also bullish with a $61 target. We want to capture any breakout with a trigger to go long at $45.05. If triggered we'll target a rally into the $48.00-49.00 range. This play might be considered more aggressive than normal because of our time frame. We do not want to hold over the early February earnings report.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/02/06 (unconfirmed)
Average Daily Volume: 891 thousand

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Patterson-UTI - PTEN - close: 36.18 change: +0.46 stop: 33.85

Company Description:
Patterson-UTI Energy, Inc. provides onshore contract drilling services to exploration and production companies in North America. The Company owns 403 land-based drilling rigs that operate primarily in the oil and natural gas producing regions of Texas, New Mexico, Oklahoma, Louisiana, Mississippi, Colorado, Utah, Wyoming, Montana, North Dakota, South Dakota and western Canada. Patterson-UTI Energy, Inc. is also engaged in the businesses of pressure pumping services and drilling and completion fluid services. Additionally, the Company has an exploration and production business. (source: company press release or website)

Why We Like It:
The oil service stocks have turned in a very strong month so far this year and there's no reason to suspect they won't continue to out perform the market. Analysts estimates are running pretty strong for earnings growth in the sector this quarter. PTEN has been showing relative strength the last few days. The stock broke out over resistance at the $35.00 level on above average volume. We considered going long right here with the recent breakout but PTEN still has some resistance overhead. Therefore we're suggesting a trigger to go long at $36.85 (a new high). If triggered we'll target a rise into the $39.85-40.00 range. More aggressive traders may want to initiate positions now or on a dip back toward the $35 level, which should now act as support. The P&F chart is bullish with a $46.50 target but a move over $37.00 would produce a new triple-top breakout buy signal. We do not want to hold over the earnings report. Unfortunately, we can't find a good date for PTEN's upcoming announcement. Some sources say January 26th other say the 31st, while other suggest PTEN will report earnings in February or even March.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/26/06 (unconfirmed)
Average Daily Volume: 3.2 million

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Shanda Inter. - SNDA - close: 17.17 change: -0.21 stop: 16.75

Company Description:
Shanda Interactive Entertainment Limited is a leading interactive entertainment media company in China. Shanda offers a portfolio of diversified entertainment content including some of the most popular massively multi-player and casual online games in China, along with online chess and board games, a network PC game platform and a variety of cartoons, literary and music content. Shanda's interactive entertainment platform attracts a large and loyal user base. Each user can interact with thousands of others and enjoy the interactive entertainment content that Shanda provides. Interaction enriches your life. (source: company press release or website)

Why We Like It:
SNDA is an aggressive, speculative play. If Intel, IBM and YHOO report bullish earnings numbers and/or offer some positive guidance during their conference calls then the technology sector is likely to rally on Wednesday. If technology rallies then SNDA's nascent rebound could pick up momentum. The stock is still battling with its five-month bearish trend and technical resistance at its 50-dma but the Point & Figure chart has already reversed into a new buy signal with a $24 target. The stock to really watch is YHOO. SNDA tends to get lumped in with some of the Internet stocks so YHOO's earnings report will probably have the biggest influence on SNDA this week. We are going to suggest a trigger to go long SNDA at $18.10, which is above technical resistance a the 50-dma. Please note - more conservative traders will probably want to wait until Wednesday to even consider going long SNDA. It would be dangerous to see SNDA breakout on Monday only to have YHOO bomb its earnings report and then see SNDA reverse on us. If triggered we will target a rally into the $19.90-20.00 range.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/02/06 (unconfirmed)
Average Daily Volume: 1.6 million
 

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