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LBTYA ILMN
QUIK  

New Long Plays

Liberty Global - LBTYA - close: 20.47 chg: +0.48 stop: 19.49

Company Description:
Liberty Global is the leading international cable operator offering advanced video, voice, and Internet-access services to connect our 15 million customers to the world of entertainment, communications and information. The Company operates state-of-the-art broadband communications networks in 19 countries principally located in Europe, Japan, Chile, and Australia. Liberty Global's operations also include significant media and programming businesses such as Jupiter TV in Japan and chellomedia in Europe. (source: company press release or website)

Why We Like It:
Shares of LBTYA appear to be breaking out higher from its six-month descending channel. The stock surged higher several days ago after announcing it will sell its French cable business for about $1.5 billion in cash. The last couple of days has seen volume pick up as shares rally higher. Now LBTYA is breaking out through technical resistance at its 50-dma and the top of its channel. We are suggesting long positions with LBTYA above $20.00. Our target will be the $21.95-22.25 range.

Picked on April 02 at $20.47
Change since picked: + 0.00
Earnings Date 05/08/06 (unconfirmed)
Average Daily Volume: 1.7 million

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QuickLogic - QUIK - close: 5.74 chg: +0.16 stop: 5.19

Company Description:
QuickLogic Corporation is the leading provider of the lowest power programmable logic solutions for the portable electronics, industrial, communications and military markets. Our latest products, PolarPro(TM), Eclipse II(TM) and QuickPCI are being used to implement bridge and control solutions in embedded systems requiring Wi-Fi and IDE-based hard disk drives. QuickLogic's proprietary ViaLink technology offers significant benefits for programmable logic, including the lowest power, instant-on capability and bulletproof intellectual property security. (source: company press release or website)

Why We Like It:
We are a little bit cautious on semiconductor stocks given Thursday's failed rally in the SOX index. However, the action in QUIK looks very bullish. The stock surged higher on Wednesday after announcing a partnership with Seagate Technology (STX) to "deliver an improved mass storage solution for portable systems incorporating the Seagate S-Series CompactFlash Hard Disc Drives and low power embedded processors." (source: press release). Both Thursday and Friday saw traders buy the dip near $5.40 and volume continues to come in above the daily average. On Friday the stock was bouncing higher into the closing bell. This looks like an opportunity to ride the momentum into the $7.25-7.50 range. The Point & Figure chart is more bullish with a $9.25 target. Watch for short-term support at $5.40 and additional support at $5.20. More conservative traders might want to try and get away with a tight stop near $5.40 instead of our stop at $5.19.

Picked on April 02 at $ 5.74
Change since picked: + 0.00
Earnings Date 02/01/06 (confirmed)
Average Daily Volume: 242 thousand
 

New Short Plays

Illumina - ILMN - close: 23.75 chg: -2.73 stop: 25.01

Company Description:
Illumina develops and markets next-generation tools for the large-scale analysis of genetic variation and function. The Company's proprietary BeadArray technology -- used in leading genomics centers around the world -- provides the throughput, cost effectiveness and flexibility necessary to enable researchers in the life sciences and pharmaceutical industries to perform the billions of tests necessary to extract medically valuable information from advances in genomics and proteomics. This information will help pave the way to personalized medicine by correlating genetic variation and gene function with particular disease states, enhancing drug discovery, allowing diseases to be detected earlier and more specifically, and permitting better choices of drugs for individual patients. (source: company press release or website)

Why We Like It:
It looks like ILMN is reversing course. The stock tagged a new multi-year high near $28.00 on Wednesday but it's seen nothing but red ever since. We don't see any particular news to account for the weakness but volume was very high on Friday's decline. The stock broke down through potential support at the $24.00 level and technical support at its 50-dma. If this sell-off continues then the next logical place to look for support is the 100-dma, currently near $20.00. We are going to suggest a trigger to open short positions. We'll suggest a trigger at $23.45, which is under the early March low. If triggered we'll target the 100-dma, but since that is a moving target, we'll use the $20.50-20.00 range for now. Please note that this might be considered a high-risk, aggressive play. The latest data puts short interest at 7.8% of its 37.9 million share float.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/01/06 (confirmed)
Average Daily Volume: 506 thousand
 

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