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New Plays
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HELE None
MW  
NAT  
PAAS  

New Long Plays

Helen of Troy - HELE - close: 19.04 chg: +0.63 stop: 17.49

Company Description:
Helen of Troy Limited is a leading designer, producer and global marketer of brand-name personal care and household consumer products. The Company's personal care products include hair dryers, curling irons, hair setters, women's shavers, brushes, combs, hair accessories, home hair clippers, mirrors, foot baths, body massagers, paraffin baths, liquid hair styling products, body powder and skin care products. (source: company press release or website)

Why We Like It:
We were very surprised to see shares of HELE in rally mode earlier this morning after missing earnings and guiding lower. The stock bounced from the $16.00 region and has refused to give back any of its gains. Now the stock is breaking out higher again with today's move over technical resistance at its 100-dma. Today's move also helps confirm a bullish breakout over its long-term trendline of resistance. We do expect some trouble with the top of the October gap down but it seems like HELE is reversing course and moving higher after a three-month base-building consolidation. We are going to target the $22.00-22.50 range with a ten-week time frame.

Picked on January 25 at $19.04
Change since picked: + 0.00
Earnings Date 01/09/06 (confirmed)
Average Daily Volume: 285 thousand

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Mens Wearhouse - MW - close: 32.62 change: +0.56 stop: 30.45

Company Description:
Founded in 1973, Men's Wearhouse is one of North America's largest specialty retailers of men's apparel with 720 stores. The stores carry a full selection of designer, brand name and private label suits, sport coats, furnishings and accessories, including tuxedo rentals available in the Men's Wearhouse and Moores stores. (source: company press release or website)

Why We Like It:
So far 2006 has been a good year for MW. The stock soared back in early January after reporting same-store sales of 8.1%, which was a lot better than Wall Street's estimates. The early rally petered out and shares faded back to test support near broken resistance and its 200-dma. Traders appear to be buying the dip and today's gain is a breakout over its short-term trend of lower highs. The P&F chart is bullish and points to a $49 target. We think shares could rally toward their July 2005 highs near $37.00 before the company reports earnings in February. Our target is the $36.00-37.00 range. We do not want to hold over the earnings report.

Picked on January 25 at $32.62
Change since picked: + 0.00
Earnings Date 02/15/06 (unconfirmed)
Average Daily Volume: 625 thousand

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Nordic Am. Tankers - NAT - close: 31.56 chg: -0.14 stop: 29.95

Company Description:
NAT is a Bermuda-based shipping company with eight modern double-hulled suezmax crude oil tankers. (source: company press release or website)

Why We Like It:
This is a short-term two-week play. It looks like NAT has produced a bottom over the last few weeks. Yesterday the stock broke out over significant technical resistance at the 50-dma. NAT pulled back a bit on Wednesday but traders bought the dip near the 50-dma and the $31.00 level. Bulls are fighting against a bearish P&F chart but we suspect that NAT will be able to rally up into its February 7th earnings report. More conservative traders may want to reduce their risk by using a trigger to go long over $32.00 and a tight stop loss under $31.00. Our target is the $34.50-35.00 range.

Picked on January 25 at $31.56
Change since picked: + 0.00
Earnings Date 02/07/06 (confirmed)
Average Daily Volume: 191 thousand

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Pan Am. Silver - PAAS - close: 19.97 chg: +1.24 stop: 18.95

Company Description:
Pan American Silver Corp. was founded in 1994 upon a single mission: to be the best vehicle for equity investors wanting real exposure to higher silver prices. Today, the Company produces more than 13 million ounces of silver annually from 6 operations in 3 countries, it has its seventh mine under construction in Mexico, and an additional silver project undergoing a feasibility study in Argentina. Pan American Silver expects to become the largest primary silver producer in the world with annual silver production growing to 23 million ounces in 2008. (source: company press release or website)

Why We Like It:
Metals got a boost today after a major analyst firm upgraded their forecast for 2006. The XAU gold & silver index added 1.9% while shares of silver-miner PAAS rallied 6.5% on very strong volume. It looks like the two-month consolidation in PAAS is about over and the stock is on the verge of another leg higher. The P&F chart already points to a $24.50 target and if it trades over $21.00 it will produce a new triple-top breakout buy signal. We are suggesting a trigger to go long at $20.26. More conservative traders may want to wait for a move over $20.50. If triggered we are going to target a rally into the $22.00-22.50 range. We do not want to hold over the late February earnings report.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/23/06 (unconfirmed)
Average Daily Volume: 1.0 million
 

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