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NTAP None
SCST  

New Long Plays

Network Appl. - NTAP - close: 33.50 chg: +0.93 stop: 31.90

Company Description:
Network Appliance is a world leader in unified storage solutions for today's data-intensive enterprise. Since its inception in 1992, Network Appliance has delivered technology, product, and partner firsts that simplify data management. (source: company press release or website)

Why We Like It:
NTAP's latest earnings report was a winner and sent shares gapping higher. Since then the stock has spent time consolidating those gains. Now that NTAP has filled the gap and bounced from support near $32.00 we see the rebound as a bullish entry point to get long the stock. Today's move in NTAP looks even more appealing now that the NASDAQ has broken out from its short-term trend of lower highs. We are going to be very aggressive with NTAP and target a rally into the $39.00-40.00 range over the next ten weeks. We would also label this an aggressive play because NTAP still has resistance at $34.50 and again at $35.00. Yet if NTAP can trade over $35.00 it would be a big buy signal. The P&F chart is already bullish and points to a $49 target.

Picked on February 27 at $33.50
Change since picked: + 0.00
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 4.5 million

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SCS Transportation - SCST - cls: 26.98 chg: +0.15 stop: 25.99

Company Description:
SCS Transportation, Inc. provides trucking transportation and supply chain solutions to a broad base of customers across the United States. With annual revenue of $1.1 billion, the Company focuses on regional and interregional less-than-truckload (LTL), and selected truckload (TL) and time-definite services. Operating subsidiaries are Saia, a multi-region LTL carrier based in Duluth, Ga., and Jevic, a hybrid LTL and truckload carrier based in Delanco, N.J. Headquartered in Kansas City, Mo., SCST has approximately 9,600 employees nationwide. (source: company press release or website)

Why We Like It:
Today's pull back in crude oil prices helped fuel a strong gain in the Dow Transportation sector index. The TRAN index is hitting new all-time highs on the strength in railroads, trucking, and the rebound in airlines today. SCST is a trucking stock and shares have been climbing for the past few months but have been stuck in a sideways consolidation for the past four weeks. We suspect that SCST is about ready to breakout and produce its next leg higher. We want to catch that move with a trigger to go long at $27.55. If triggered we will target a rally into the $29.90-30.00 range. SCST's P&F chart points to a $36.50 target.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/25/06 (unconfirmed)
Average Daily Volume: 139 thousand
 

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