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

New Long Plays

PW Eagle - PWEI - close: 28.92 chg: +0.82 stop: 26.45

Company Description:
PW Eagle, Inc. is a leading extruder of PVC pipe products and its wholly-owned subsidiary, USPoly Company, LLC, is a leading manufacturer of PE pipe and fittings. Together they operate fourteen manufacturing facilities across the United States. (source: company press release or website)

Why We Like It:
Volume was pretty low on Thursday but that didn't stop PWEI from out performing the market with a 2.9% rebound. Actually the rebound began on Wednesday when bulls bought the dip toward $26.50 and pushed PWEI back into the green. The recent two-week consolidation looks a bit like a bull flag pattern. If that's the case then Thursday's gain is a breakout through the top of the flag and an entry point to go long the stock. Short-term technicals have certainly improved over the last couple of days. The P&F chart looks very bullish with a $43 target. We are going to suggest long positions with PWEI above $28.00. More conservative traders may want to wait for a trade over the $30.00 level or the high at $30.35 before initiating positions. Our target will be the $33.50-34.00 range. We do not want to hold over the mid-May earnings report.

Picked on April 16 at $28.92
Change since picked: + 0.00
Earnings Date 05/17/06 (unconfirmed)
Average Daily Volume: 500 thousand


Threshold Pharma. - THLD - close: 16.06 chg: +1.04 stop: 14.49

Company Description:
Threshold is a biotechnology company focused on the discovery, development and commercialization of small molecule therapeutics in middle- and late-stage clinical trials for the potential treatment of benign prostatic hyperplasia (BPH), a disease afflicting tens of millions of men worldwide, and cancer. By selectively targeting tumor or other abnormally-proliferating cells, the Company's drug candidates are designed to be potentially more effective and less toxic to healthy tissues than conventional treatments. (source: company press release or website)

Why We Like It:
THLD is a simple bullish breakout play. The stock has been consolidating sideways between $13.00 and $16.00 (really 15.70) for the past four months. This past Thursday the stock broke out over significant resistance on strong volume that was about four times the average daily volume. The move produced a new triple-top breakout buy signal on its P&F chart that now points to a $26 price target. Readers have a choice. They can go long the stock now with it over $16.00 or look for a possible pull back into the $15.50-15.70 region, which should be new support. Our target is the $17.95-18.25 range only because we do not want to hold over the early May earnings report. Traders with a longer-term time frame may want to aim higher. Remember, that any time you trade a biotech/drug company there is always an increased risk of headline news. A failed test or clinical trial or FDA rejection could send the stock gapping lower. Or the opposite could happen and good news could send shares soaring.

Picked on April 16 at $16.06
Change since picked: + 0.00
Earnings Date 05/08/06 (unconfirmed)
Average Daily Volume: 384 thousand

New Short Plays

None today.

Premier Investor New Play Archives