Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
NEW PLAYS TABLE-->
New Plays
Long Plays
Short Plays
CW
ERICY  
PALM  
TASR  

New Long Plays

Curtiss Wright - CW - close: 59.78 chg: +0.77 stop: 57.99

Company Description:
Curtiss-Wright Corporation is a diversified company headquartered in Roseland, New Jersey. The Company designs, manufactures and overhauls products for motion control and flow control applications, and provides of metal treatment services. The firm employs approximately 6,000 people worldwide. (source: company press release or website)

Why We Like It:
We normally don't suggest trading stocks with average daily volume this low. CW's is about 76,000 shares a day. However, we like how shares look poised to breakout over significant resistance in the $60.00 region after weeks of being in a trading range between $58.00 and $60.00. A few days ago the company announced a 2-for-1 stock split that's set for April 24th. Just two trading days ago the company reported earnings and beat estimates by 5 cents a share. The recent high in January was $60.29. We are going to suggest a trigger to go long the stock at $60.35. Feel free to adjust your own trigger. More conservative traders might want to use something like 60.51. If triggered we will target a run up into the $63.95-64.00 range. Currently the P&F chart is bullish and points to a $73.00 target. We'll set our stop loss just under the bottom of the recent trading range.

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/09/06 (confirmed)
Average Daily Volume = 76 thousand

---

LM Ericsson - ERICY - close: 34.26 chg: -0.02 stop: 33.93

Company Description:
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. (source: company press release or website)

Why We Like It:
ERICY has not done so great after its recent earnings report at the end of January. Yet the pull back may prove to be an entry point for bulls. The stock has drifted back toward significant support on its weekly chart and on its daily chart at the 200-dma. The stock was bouncing from support on Friday but it needs a little more confirmation. We are suggesting a trigger to go long the stock at $34.61. If triggered we will target a rally into the $36.75-37.00 range. We'll put our stop under today's low.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/31/06 (confirmed)
Average Daily Volume: 2.2 million

---

Palm Inc. - PALM - close: 37.49 change: +0.54 stop: 35.99

Company Description:
Palm, Inc., a leader in mobile computing, strives to put the power of computing in people's hands so they can access and share their most important information. The company's products for consumers, mobile professionals and businesses include Palm handheld computers, Palm Treo(TM) smartphones, Palm LifeDrive(TM) mobile managers, as well as software, services and accessories. (source: company press release or website)

Why We Like It:
PALM is bouncing from the bottom of its rising channel. This looks like a low-risk entry point to go long the stock and ride it back toward the recent highs. We'll put our stop loss under Friday's low and under the $36.00 mark. Our target is the $41.00 level but more aggressive traders may want to aim higher. The P&F chart is very bullish with a $58 target.

Picked on February 12 at $37.49
Change since picked: + 0.00
Earnings Date 03/19/06 (unconfirmed)
Average Daily Volume: 2.1 million

---

TASER Intl. - TASR - close: 9.75 change: +0.26 close: 9.24

Company Description:
TASER Internationals products save lives every day, providing devices for use in law enforcement, corrections, private security and personal defense market. Since its founding in 1993, TASER International has remained committed to providing solutions to violent confrontation by developing products that enable people to protect themselves. The Company is driven to do all that is possible to ensure that society, as well as our customers, can benefit from our products, while upholding the highest level of personal and professional ethics in the execution of business. TASER International, Inc. develops, assembles and markets conducted energy weapons that enable people to protect themselves while minimizing the risk of serious injury or death. (source: company press release or website)

Why We Like It:
TASR looks like a short-squeeze waiting to happen. The stock has been climbing relatively steadily since its 2005 lows in October. Late last month shares broke out over their simple 200-dma and now the stock is challenging round-number, psychological resistance at the $10.00 mark. The most recent data puts short interest at just over 30% of its 56.8 million-share float. The bears must flinch every time some analyst firm issues positive comments for the stock. We are going to suggest a trigger to go long the stock at $10.05. If triggered our target will be the $11.85-12.00 range. We do not want to hold over the February 22nd earnings report. FYI: the gap you see in the chart below was for the time TASR traded with an "E" on the end since the company was late filing its 10-Q for its third quarter.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/22/06 (nconfirmed)
Average Daily Volume: 2.9 million
 

New Short Plays

None today.
 

Premier Investor New Play Archives