Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
None AMKR
  BIDU
  OMX

New Long Plays

None today.
 

New Short Plays

Amkor Tech. - AMKR - close: 8.50 change: -0.08 stop: 9.01

Company Description:
Amkor is a leading provider of advanced semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and, manufacturing and support services. (source: company press release or website)

Why We Like It:
A very strong earnings report back in early February helped launch the stock in a huge rally that pushed shares from under $6.00 to $10.00. Now it looks like shares have come too far too fast and the sell-off/breakdown in the SOX semiconductor sector index suggests the whole group is going lower. AMKR's short-term technical indicators have turned bearish and its MACD has produced a new sell signal. We do expect the $7.00 level, which was resistance to act as new support. As a matter of fact we will be watching for a new bottom or bounce from $7.00 as a potential entry point for bullish positions. However, short-term we are suggesting shorts and a target in the $7.55-7.45 range.

Picked on March 09 at $ 8.50
Change since picked: + 0.00
Earnings Date 05/10/06 (unconfirmed)
Average Daily Volume: 3.2 million

---

Baidu.com - BIDU - close: 48.32 change: -3.17 stop: 52.11

Company Description:
Baidu.com, Inc. is the leading Chinese language Internet search provider. As a technology-based media company, Baidu aims to provide the best way for people to find information. In addition to serving individual Internet search users, Baidu provides an effective platform for businesses to reach potential customers. Baidu's ADSs, each of which represents one Class A ordinary share, currently trade on the NASDAQ Global Market under the symbol "BIDU". (source: company press release or website)

Why We Like It:
BIDU is an aggressive (a.k.a. riskier than normal) short play. The stock is known for being volatile and shares could reverse on us pretty quickly. Fortunately, the long-term trend seems to be bearish. Shares spiked higher on February 22nd after a better than expected earnings report but there was no follow through. Today's breakdown was on above average volume and broke the four-week trendline of support. The MACD is nearing a new sell signal. We are going to use a wide stop loss just in case BIDU tries to fill the gap from this morning. We are going to target the $41.00-40.00 range. More conservative traders might want to exit near the February lows (around $44). Keep an eye on Google (GOOG). The entire Internet sector might see selling pressure pick up if GOOG breaks under the February low ($337) or the top of the October 2005 gap ($333).

Picked on March 09 at $ 48.32
Change since picked: + 0.00
Earnings Date 05/23/06 (unconfirmed)
Average Daily Volume = 788 thousand

---

Officemax - OMX - close: 28.90 chg: -0.11 stop: 29.41

Company Description:
OfficeMax is a leader in both business-to-business and retail office products distribution. OfficeMax delivers an unparalleled customer experience -- in service, in product, in time savings, and in value -- through a relentless focus on its customers. The company provides office supplies and paper, print and document services, technology products and solutions, and furniture to large, medium and small businesses and consumers. OfficeMax customers are served by approximately 40,000 associates through direct sales, catalogs, Internet and approximately 950 superstores. (source: company press release or website)

Why We Like It:
OMX looks poised for a breakdown. The stock has bounded higher in the last two months from about 24.20 to over $31.00. Now the stock has drifted back toward its trendline of support and the tug-of-war between the bulls and the bears is getting tight. Shares are hovering back and forth around support/resistance in the $28.85-29.00 region. If the major indices head south tomorrow we'd expect a breakdown in OMX. We're going to suggest a trigger to short the stock at $28.69. If triggered we'll target a move into the $27.10-27.00 range, which should line up with a 50% retracement of its two-month rally.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/04/06 (unconfirmed)
Average Daily Volume: 1.0 million
 

Premier Investor New Play Archives