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New Plays
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ARLP None
CEC  
NAFC  
RCRC  

New Long Plays

Alliance Res. - ARLP - close: 39.20 chg: +1.20 stop: 37.49

Company Description:
Alliance Resource Partners is the nation's only publicly traded master limited partnership involved in the production and marketing of coal. Alliance Resource Partners currently operates eight mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia. (source: company press release or website)

Why We Like It:
We are long-term bullish on coal stocks given our country's energy needs. However, the industry's stocks have been in a slow decline for months now. We suspect that ARLP's consolidation is about over. Today's gain in ARLP is a breakout over its simple 50-dma and the stock is challenging resistance at its multi-week trendline. We are going to suggest a trigger above round-number resistance at $40.00 and technical resistance at the 200-dma (39.66). Our trigger to go long will be $40.05. If triggered we will target a rally into the $44.00-45.00 range. Our time frame is eight to tend weeks.

Picked on February x at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/30/06 (confirmed)
Average Daily Volume: 112 thousand

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CEC Entertainment - CEC - cls: 37.61 chg: +1.59 stop: 35.18

Company Description:
Where a Kid can be a Kid, Chuck E. Cheese's Pizza is also a special place for families. The menu features homemade pizza with fresh, high quality ingredients, sandwiches, bread sticks and a salad bar. In addition, Chuck E. Cheese's offers games and rides for kids of all ages and an animated stage show starring Chuck E. and his musical friends. The restaurants are also a popular location for birthday parties and special events for groups and organizations. The Chuck E. Cheese's Pizza concept has been in operation since May of 1977 when the first restaurant opened in San Jose, California. (source: company press release or website)

Why We Like It:
This is a technical breakout play. CEC has been consolidating sideways under its simple 200-dma for the last several weeks. Today's rally is a bullish breakout over the November-December highs and the 200-dma. The move was fueled by volume more than double the daily average. Bulls are fighting against a bearish P&F chart but CEC can probably rally toward round-number resistance near $40.00. We would consider longs right here or watch for a dip back to the $36.50 region. Our target is the $39.85-40.00 range.

Picked on February 1 at $37.61
Change since picked: + 0.00
Earnings Date 03/01/06 (unconfirmed)
Average Daily Volume: 226 thousand

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Nash-Finch Co. - NAFC - close: 30.37 chg: +0.77 stop: 29.29

Company Description:
Nash Finch Company is a Fortune 500 company and one of the leading food distribution companies in the United States. Nash Finch's core business, food distribution, serves independent retailers and military commissaries in 28 states, the District of Columbia, Europe, Cuba, Puerto Rico, Iceland, the Azores and Honduras. The Company also owns and operates a base of retail stores, primarily supermarkets under the Econofoods, Family Thrift Center and Sun Mart trade names. (source: company press release or website)

Why We Like It:
This is a simple buy the bounce from the bottom of its rising channel play. NAFC bottomed back in early January and shares have been rising in a steady channel since. Today's rebound is a bounce from rising support. Plus, today's gain also happened to produce a bullish engulfing candlestick pattern. We're going to put our stop loss under today's low. Our target is the $32.45-32.50 range. More conservative traders may want to exit near $32.00 since the 100-dma might act as overhead resistance. Hopefully a follow through on today's bounce will spark some more short covering. The latest data puts short interest at 11.8% of its 13.2 million-share float. Please note the biggest risk we see here with NAFC is earnings. We cannot find any upcoming earnings date and we certainly don't want to hold over any future report.

Picked on February 1 at $30.37
Change since picked: + 0.00
Earnings Date 00/00/06 (unconfirmed)
Average Daily Volume: 240 thousand

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RC2 Corp. - RCRC - close: 35.62 chg: +0.75 stop: 34.49

Company Description:
RC2 Corporation (www.rc2corp.com) is a leading designer, producer and marketer of innovative, high-quality toys, collectibles, hobby and infant care products that are targeted to consumers of all ages. RC2's infant and preschool products are marketed under its Learning Curve family of brands which includes The First Years by Learning Curve and Lamaze brands as well as popular and classic licensed properties such as Thomas & Friends, Bob the Builder, Winnie the Pooh, John Deere and Sesame Street. RC2 markets its collectible and hobby products under a portfolio of brands including Johnny Lightning, Racing Champions, Ertl, Ertl Collectibles, AMT, Press Pass, JoyRide and JoyRide Studios. RC2 reaches its target consumers through multiple channels of distribution supporting more than 25,000 retail outlets throughout North America, Europe, Australia, and Asia Pacific. (source: company press release or website)

Why We Like It:
Shares of RCRC appear to be on the verge of a significant bullish breakout. The stock is bouncing from support near the $34.00 level and today's gain is a bullish breakout over the simple 50-dma. Volume came in above average. RCRC is also challenging resistance at its six-month overhead trendline and the 200-dma. We are suggesting a trigger to go long at $36.05. If triggered we'll target a rally into the $39.00-40.00 range but we will plan to exit ahead of its February earnings report.

Picked on February x at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/14/06 (unconfirmed)
Average Daily Volume: 114 thousand
 

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