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IACI None
MCHP  
SNPS  

New Long Plays

IAC/InterActive - IACI - close: 29.99 chg: +0.34 stop: 28.75

Company Description:
IAC operates leading and diversified businesses in sectors being transformed by the Internet, online and offline... our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. (source: company press release or website)

Why We Like It:
Shares of IACI have been testing resistance in the $30.00-30.25 region for the last two months. We suspect the stock is poised to breakout above this zone soon. If you look at the weekly chart you'll also notice that IACI has apparently bottomed and is building a bullish consolidation pattern of higher lows. We are going to suggest a trigger to go long the stock at $30.31. More conservative traders may actually want to wait for a move over $31.00 since a move over $31.00 would produce a new Point & Figure chart buy signal and a breakout over significant P&F chart resistance. If we are triggered at $30.31 we'll start the play with a stop loss at $28.75. Our target will be the $32.90-33.00 range.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/08/06 (confirmed)
Average Daily Volume: 2.1 million

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Microchip - MCHP - close: 36.51 chg: +0.41 stop: 34.99

Company Description:
Microchip Technology Inc. is a leading provider of microcontroller and analog semiconductors, providing risk-free product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Ariz., Microchip offers outstanding technical support along with dependable delivery and quality. (source: company press release or website)

Why We Like It:
MCHP's rally today is a follow through on yesterday's rebound from support. The stock has been climbing in a wide, rising channel and Wednesday's bounce was from support near $35.00 and its simple 50-dma (also near the bottom of its rising channel). Today's move over $36.50 is also a bullish breakout over its month-long consolidation and trendline of lower highs. The MACD is nearing a new buy signal and short-term oscillators already look positive. We are going to target a rally into the $39.50-40.00 range. More conservative traders may want to plan an early exit near $38.00 which looks like the next level of significant resistance.

Picked on March 02 at $36.51
Change since picked: + 0.00
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume: 1.6 million

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Synopsys - SNPS - close: 22.49 change: +0.50 stop: 21.48

Company Description:
Synopsys, Inc. is a world leader in electronic design automation (EDA) software for semiconductor design. The company delivers technology-leading semiconductor design and verification platforms and IC manufacturing software products to the global electronics market, enabling the development and production of complex systems-on-chips (SoCs). Synopsys also provides intellectual property and design services to simplify the design process and accelerate time-to-market for its customers. Synopsys is headquartered in Mountain View, California and has offices in more than 60 locations throughout North America, Europe, Japan and Asia. (source: company press release or website)

Why We Like It:
SNPS has been out performing its peers in the software sector over the last few months. The stock seems to be climbing in a rising channel with support along its rising 50-dma. Yesterday's bounce from the 50-dma was followed up today with a move over short-term resistance. We see this as a new entry point to go long the stock. We'll put our stop loss under yesterday's low (and support). Our target will be the $24.40-24.50 range. The P&F chart is much more bullish with a $38.50 price target.

Picked on March 02 at $22.49
Change since picked: + 0.00
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 1.4 million
 

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