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Brunswick - BC - close: 40.20 change: -0.44 stop: 41.01

Company Description:
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Teignbridge propellers; MotoTron electronic controls; Northstar marine electronics; Navman marine and GPS-based products; IDS dealer management systems; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston Whaler, Crestliner, HarrisKayot, Hatteras, Lowe, Lund, Maxum, Meridian, Ornvik, Palmetto, Princecraft, Quicksilver, Savage, Sea Boss, Sea Pro, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Attwood marine parts and accessories; Land 'N' Sea and Kellogg Marine parts and accessories distributor; Life Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling centers, equipment and consumer products; Brunswick billiards tables; and Valley-Dynamo pool, Air Hockey and foosball tables. (source: company press release or website)

Why We Like It:
Shares of BC look poised to move lower. The stock has produced two failed rallies near its simple 200-dma in the last five weeks. Today's decline pushed the stock back under its simple 50-dma. The P&F chart is already in a sell signal that points to a $22 target. The trend changed in BC back in April 2005 after the stock failed to breakout over the $50 level. Since then the stock has produced several failed rallies, all lower highs from the April peak. The company issued an earnings warning back in September 2005 and that explains the gap down on the chart. We are going to suggest a trigger to short BC at $39.45, which is under December's support near 39.50. What makes this play somewhat risky is the time frame. BC is due to report earnings before the market open on January 26th. We do not want to hold over the report. That does not give us a lot of time for BC to trigger the play and then trade into our target in the $36.00-35.00 range.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/26/06 (unconfirmed)
Average Daily Volume: 746 thousand
 

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