Option Investor
New Plays
Printer friendly version
New Plays
Long Plays
Short Plays

New Long Plays

Amer. Campus Comm. - ACC - close: 27.11 chg: +0.56 stop: 25.49

Company Description:
American Campus Communities, Inc. is one of the largest publicly traded REITs solely focused on student housing in the United States. American Campus Communities is a fully integrated, self-managed and self-administered equity REIT with expertise in the acquisition, design, finance, development, construction management, and leasing and management of student housing properties. The company owns and manages 38 high-quality student housing properties containing approximately 22,800 beds. Including its owned properties, the company provides management and leasing services at a total of 53 properties, representing approximately 32,000 beds located on or near college and university campuses. (source: company press release or website)

Why We Like It:
The REITs, or real estate investment trusts, have been performing very well. Many REITs are hitting new highs. ACC happens to be one of them. The stock broke out to new highs a few days ago and has since consolidated back toward previous resistance to retest it as new support. We see the new bounce from support in the $25.50-26.00 region as a new bullish entry point. We're going to suggest long positions above $26.00. Our target is the $29.75-30.00 range. Our time frame is about eight weeks. What we do not like about ACC is the low volume. The stock's average daily volume is under 100,000 shares. We normally try and trade stocks with average volume above 250,000 or more. Another REIT we like as a bullish candidate that does have better volume is Archstone-Smith (symbol: ASN).

Picked on March 15 at $27.11
Change since picked: + 0.00
Earnings Date 03/01/06 (confirmed)
Average Daily Volume: 70 thousand

New Short Plays

Crown Castle Intl. - CCI - close: 29.36 chg: -0.84 stop: 31.01

Company Description:
Crown Castle International Corp. engineers, deploys, owns and operates technologically advanced shared wireless infrastructure, including extensive networks of towers. Crown Castle offers significant wireless communications coverage to 76 of the top 100 U.S. markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 11,000 and over 1,300 wireless communication sites in the U.S. and Australia, respectively. (source: company press release or website)

Why We Like It:
We have had our eye on CCI for the last several days. The stock has been flirting with support at its rising 50-dma but has failed to produce any significant bounce. The long-term trend for CCI is very bullish and combine that with a bullish market and shorting this stock seems like a risky proposition. However, there appear to be a lot of clues suggesting that the next move in CCI will be lower. CCI has been trading under a trend of lower highs for over a month. Short-term technical oscillators are negative. Weekly technical indicators look bearish. Plus, today's session displayed plenty of relative weakness with a clear breakdown under the $30.00 level and its 50-dma. Actually if you look at the daily chart there is a bad tick that helps produce a bearish engulfing candlestick pattern. We are going to suggest shorts here with CCI under $29.50. More conservative traders may want to wait for a move under $29.00 before initiating plays. Our target will be the $26.25-26.00 range, above its 200-dma.

Picked on March 15 at $29.36
Change since picked: + 0.00
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume: 1.1 million

In Play Updates and Reviews

Long Play Updates

Aeropostale - ARO - close: 30.23 change: +0.22 stop: 29.99

ARO is still inching higher but remains under resistance at the $31.00 level. We're suggesting a trigger at $31.21 to open long positions. If triggered then we'll target a rally into the $33.95-34.50 range.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 03/09/06 (confirmed)
Average Daily Volume: 1.1 million


BE Aerospace - BEAV - close: 24.60 change: +0.19 stop: 22.95

BEAV is still creeping higher along with the defense sector indices. We do notice that BEAV's MACD indicator is nearing a new buy signal. The next challenge for BEAV is resistance at the $25.00 mark. Our target is the $26.00-26.50 range but more aggressive traders may want to aim higher.

Picked on March 12 at $24.25
Change since picked: + 0.35
Earnings Date 05/05/06 (unconfirmed)
Average Daily Volume: 800 thousand


Hewlett Packard - HPQ - cls: 33.89 chg: +0.49 stop: 32.45*new*

Technology stocks were broadly higher today and HPQ is finally getting in on the act. The stock added 1.4% on average volume, which is an improvement on the volume picture. Technical indicators are turning bullish but the stock is nearing potential resistance in the $34.25-34.50 region. We are targeting a move into the $35.00-35.50 range. Please note that we're adjusting our stop loss to $32.45.

Picked on February 22 at $32.94
Change since picked: + 0.72
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 13.5 million


IAC/InterActive - IACI - close: 31.15 chg: +0.07 stop: 28.99

IACI spent the session consolidating sideways but the intraday pattern looks somewhat bullish with a trend of higher lows. The move over $31.00 has produced a new triple-top breakout buy signal on the P&F chart that points to a $40 target. Our target for IACI is the $32.90-33.00 range.

Picked on March 03 at $30.31
Change since picked: + 0.84
Earnings Date 02/08/06 (confirmed)
Average Daily Volume: 2.1 million


Synopsys - SNPS - close: 22.72 change: +0.43 stop: 21.58

Our play on SNPS has bounced back into the green today. The stock added almost 2% on above average volume and that's a good sign for the bulls. The MACD indicator is nearing a new buy signal. We would still consider new bullish positions here. Our target is the $24.40-24.50 range.

Picked on March 02 at $22.49
Change since picked: + 0.23
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 1.4 million

Short Play Updates

Amkor Tech. - AMKR - close: 8.95 change: +0.31 stop: 9.01

The SOX was definitely under performing some of the other technology-related sector indices but that didn't stop AMKR from bouncing. AMKR rebounded right back toward resistance near the $9.00 level. We are not suggesting new bearish positions and more conservative traders may want to exit early given today's breakout over its simple 10-dma. If the markets are positive tomorrow (or the SOX) then we expect to be stopped out at $9.01.

Picked on March 09 at $ 8.50
Change since picked: + 0.34
Earnings Date 05/10/06 (unconfirmed)
Average Daily Volume: 3.2 million


Baidu.com - BIDU - close: 48.50 change: -0.20 stop: 52.11

We don't see any change from our previous updates. BIDU continues to show relative weakness. This remains a risky play and given the market environment we're not suggesting new positions. We are going to target the $41.00-40.00 range. More conservative traders might want to exit near the February lows (around $44).

Picked on March 09 at $ 48.32
Change since picked: + 0.18
Earnings Date 05/23/06 (unconfirmed)
Average Daily Volume = 788 thousand


Hilton Hotels - HLT - close: 23.22 chg: +0.22 stop: 24.06

We warned readers to watch for a bounce in HLT today. However, we expected a rebound toward $23.50. It looks like the bounce stalled at $23.30 near its simple 200-dma. We're not suggesting new bearish positions. Our target is the $22.25-22.00 range.

Picked on March 02 at $23.98
Change since picked: - 0.77
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume: 2.9 million


Hovnanian - HOV - close: 44.54 change: -0.51 stop: 46.11

There was no follow through on yesterday's big bounce in the homebuilders. That's good news for the bears but we're not out of danger yet. HOV dipped toward the $44.00 level today and failed to breakdown below it. We are not suggesting new bearish positions.

Picked on March 05 at $44.85
Change since picked: - 0.31
Earnings Date 03/01/06 (confirmed)
Average Daily Volume: 972 thousand


Officemax - OMX - close: 29.02 chg: +0.07 stop: 29.41

We are fortunate that OMX did not participate more in today's market rally. However, just because it didn't doesn't mean we're out of the woods yet. We are not suggesting new positions at this time. Our target is the $27.10-27.00 range.

Picked on March 14 at $28.69
Change since picked: + 0.33
Earnings Date 05/04/06 (unconfirmed)
Average Daily Volume: 1.0 million

Closed Long Plays


Closed Short Plays


Today's Newsletter Notes: Market Wrap by Linda Piazza and all other plays and content by the Option Investor staff.


Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

To ensure you continue to receive email from Option Investor please add "support@optioninvestor.com"

Option Investor Inc
PO Box 630350
Littleton, CO 80163
Copyright Option Investor Inc, 2005
All rights reserved

Premier Investor New Play Archives