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New Plays
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AAUK None
DNR  
GLG  
OIS  
TRID  

New Long Plays

Anglo-American - AAUK - close: 18.73 chg: +0.51 stop: 17.65

Company Description:
Anglo American is a global leader in mining and natural resources focused on adding value for shareholders, customers, employees and the communities in which the Group operates. The Group owns a well diversified range of high quality assets covering gold, platinum, diamonds, coal, ferrous and base metals, industrial minerals and paper and packaging, underpinned by considerable financial strength and technical expertise. Anglo's businesses are involved in an array of value adding products and services along a pipeline that extends from the initial mining or production of raw materials to, in some products, the ultimate consumer. (source: company press release or website)

Why We Like It:
A rally in gold on Friday and a strong bounce in the metal and mining stocks helped push shares of AAUK through resistance. The stock's 2.7% gain is a bullish breakout through resistance at $18.50, its 50-dma and its two-month trendline of lower highs. We are going to suggest bullish positions here although some traders may want to wait and look for a dip back toward $18.50. Our target will be the $19.85-20.00 range. If you look at the chart AAUK appears to have produced a big bull flag pattern and more aggressive traders may want to aim higher than $20.

Picked on March 26 at $18.73
Change since picked: + 0.00
Earnings Date 02/06/06 (confirmed)
Average Daily Volume: 1.6 million

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Denbury Res. - DNR - close: 30.47 change: +1.48 stop: 27.95

Company Description:
Denbury Resources Inc. (www.denbury.com) is the largest oil and natural gas operator in Mississippi, owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River, and holds key operating acreage in the onshore Louisiana, Alabama, and Texas Barnett Shale areas. The Company increases the value of acquired properties in its core areas through a combination of exploitation drilling and proven engineering extraction practices. (source: company press release or website)

Why We Like It:
We are bullish on oil and the oil sectors. The price of crude is likely to stay high given the violence in Nigeria and the geopolitical concerns with Iran and Iraq. Meanwhile the OIX and OSX oil indices look ready to breakout higher. Leading the charge is DNR. The stock has broken out above resistance at $29.00 and the $30.00 levels on Friday. Volume was very strong on Friday's rally, which is also a bullish development. We would suggest long positions above $30.00. The P&F chart points to a $46 target. We are only targeting a move into the $33.50-34.00 range.

Picked on March 26 at $30.47
Change since picked: + 0.00
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume: 783 thousand

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Glamis Gold - GLG - close: 29.36 chg: +1.44 stop: 26.74

Company Description:
Glamis Gold Ltd. is a premier intermediate gold producer with low-cost gold mines and development projects in Nevada, Mexico and Central America. Plans call for growth from 434,000 ounces of gold production in 2005 to over 700,000 ounces in 2007. The Company remains 100 percent unhedged. (source: company press release or website)

Why We Like It:
GLG is another bullish candidate in the metals, gold and mining sector. The price of gold has bounce strongly in the last couple of days and Friday saw gold price breakout over its 50-dma. GLG has produced a similar move with a bounce from its 100-dma and now Friday's breakout over its 50-dma and its trend of lower highs. The MACD indicator has turned positive as have more short-term technical oscillators. We are going to suggest bullish positions with GLG above the 50-dma (28.85) but more conservative traders may want to wait for a move over $30.00 before initiating new positions. Our target is the $32.00-32.50 range.

Picked on March 26 at $29.36
Change since picked: + 0.00
Earnings Date 05/15/06 (unconfirmed)
Average Daily Volume: 1.4 million

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Oil States Intl. - OIS - close: 35.35 chg: +1.04 stop: 32.24

Company Description:
Oil States International, Inc. is a diversified oilfield services company. With locations around the world, Oil States is a leading manufacturer of products for deepwater production facilities and subsea pipelines, and a leading supplier of a broad range of services to the oil and gas industry, including production-related rental tools, work force accommodations and logistics, oil country tubular goods distribution and land drilling services. (source: company press release or website)

Why We Like It:
The OSX oil services index looks ready to breakout from its current consolidation. If that occurs then shares of OIS will probably build on its current rebound and potentially start a new leg higher that will challenge the January highs. OIS already appears to have broken out from its two-month consolidation lower. The stock has bounced twice near its 200-dma and technical indicators are turning bullish. The P&F chart may be bearish but it shows OIS currently rebounding from a test of support. Aggressive traders may want to open long positions now or look for a dip and bounce near $34. We are going to wait. We're suggesting a trigger to go long at $36.05. If triggered then we will target a rally into the $41-42 range. Please note that we do not want to hold over the late April earnings report.

Picked on March xx at $xx.xx
Change since picked: + 0.00
Earnings Date 04/20/06 (unconfirmed)
Average Daily Volume: 777 thousand

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Trident Micro. - TRID - 30.50 chg: +1.55 stop: 27.49

Company Description:
Trident Microsystems, Inc., with headquarters in Sunnyvale, California, designs, develops and markets digital media integrated circuits for HDTV, LCD TV, PDP TV, DLP TV, and DCRT. Trident's products are sold to a network of OEMs, original design manufacturers and system integrators worldwide. (source: company press release or website)

Why We Like It:
The SOX semiconductor index, while still stuck in a four-week bearish trend, is showing signs of a potential bottom and a possible bullish reversal. If the SOX does rebound then TRID will have stronger sector support for its already bullish momentum. Shares of TRID have been channeling higher for months and the stock recently bounced near the bottom of its rising channel. Friday's big gain was fueled by very strong (bullish) volume and the stock broke out over resistance in the $29.50-30.00 range. The MACD has produced a new buy signal. We are going to suggest long positions with TRID over $29.00. Our target will be the $33.00-33.50 range. We do not want to hold over the mid April earnings report.

Picked on March 26 at $30.50
Change since picked: + 0.00
Earnings Date 04/19/06 (unconfirmed)
Average Daily Volume: 1.6 million
 

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