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New Plays
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ATLS None
ALV  
BIDU  
PVH  

New Long Plays

Atlas America - ATLS - close: 51.25 chg: +1.65 stop: 46.99

Company Description:
Atlas America, Inc. is an energy company engaged primarily in the development, production and transportation of natural gas. In the Appalachian Basin, the company develops and produces natural gas for its own account and for its investors through the offering of tax advantaged investment programs. Atlas America also owns 100% of the general partner interest and an approximate 13% limited partner interest in Atlas Pipeline Partners, L.P. APL owns and operates more than 4,600 miles of natural gas transmission and gathering pipelines in Oklahoma, Texas, Arkansas, Pennsylvania, New York, and Ohio and gas processing facilities in Oklahoma. (source: company press release or website)

Why We Like It:
We were initially looking for a new bullish candidate in the oil sector but ATLS looks like a contender from the natural gas industry. Natural gas futures have recently broken out higher from a six-week consolidation pattern, which makes the natural gas industry a lot less extended than some of the oil equities. The stock (ATLS) has been consolidating under resistance at the $50.00 level for more than three months. Today the stock broke out on big volume and closed at a new high. This move could spark some serious short covering. The latest data put short interest at 7.3% of ATLS' 16.2 million-share float. Our short-term target for ATLS is the $54.90-55.00 range. More aggressive traders may want to aim higher, especially with the P&F chart pointing to a $70 target. However, we do not want to hold over the early May earnings report.

Picked on April 19 at $51.25
Change since picked: + 0.00
Earnings Date 05/01/06 (unconfirmed)
Average Daily Volume: 163 thousand

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Autoliv - ALV - close: 56.40 chg: +1.12 stop: 53.99

Company Description:
Autoliv Inc. develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures Autoliv has 80 facilities with nearly 39,000 employees in 30 vehicle-producing countries. In addition, the company has development and engineering centers in six countries around the world, including 20 test tracks, more than any other automotive safety supplier. Sales in 2005 amounted to US $6.2 billion. (source: company press release or website)

Why We Like It:
ALV appears to be bouncing from the bottom of its rising channel and technical support near the 50-dma. This makes the recent bounce a tempting entry point to go long the stock and target the top of the channel. The technical indicators are also turning bullish and the P&F chart is very bullish with a $95 target. We do expect some resistance near $58.00 but our target is the $59.85-60.00 range. We do not want to hold over the late April earnings report, which is currently unconfirmed.

Picked on April 19 at $56.40
Change since picked: + 0.00
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume: 529 thousand

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Baidu.com - BIDU - close: 61.33 chg: +3.78 stop: 56.49

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. (source: company press release or website)

Why We Like It:
The tables appear to have turned for BIDU. The stock has been violently sinking lower for months but in the last several weeks BIDU seems to have built a significant bottom. Today's move is a bullish breakout over resistance at its 100-dma and the $60.00 mark. Volume on the breakout was more than double the daily average. This could spark more short covering. It looks like short interest is about 4% of the 13.5 million-share float. It is very tempting to consider long positions here and aggressive traders may want to go long right now (over $60.00). Yet we're going to wait. BIDU is a very volatile stock and not for everyone. We want to see a little more confirmation so we're suggesting a trigger at 62.55, which is above potential resistance at the exponential 200-dma near $62.35. The P&F chart is bullish and points to an $83 target. If we are triggered we're going to target the $68.00-70.00 range. We do not want to hold over the May 9th earnings report.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/09/06 (confirmed)
Average Daily Volume: 877 thousand

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Phillips Van-Heusen - PVH - cls: 38.59 chg: +0.81 stop: 36.39

Company Description:
Phillips-Van Heusen Corporation is one of the world's largest apparel companies. It owns and markets the Calvin Klein brand worldwide. It is the world's largest shirt company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, IZOD, Arrow, and G.H. Bass & Co., and its licensed brands Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, unlisted, A Kenneth Cole Production, BCBG Max Azria, BCBG Attitude, Sean Jean, MICHAEL Michael Kors, Chaps, Donald J. Trump Signature Collection, and, beginning in the second half of 2006, JOE Joseph Abboud. (source: company press release or website)

Why We Like It:
PVH is probably not the fastest moving stock for us to play but it looks attractive. Shares just broke out from a four-week consolidation phase inside PVH's longer-term bullish trend. The MACD is nearing a new buy signal and short-term oscillators are already bullish. The P&F chart points to a $56.00 target. We are suggesting long positions with PVH above $38.00. Our target will be the $42.00-42.50 range. We do expect some resistance near $40.00 to slow down PVH's ascent. Our time frame is about eight weeks. Keep your ears open for any news when PVH presents at the May 3rd Lehman Brothers retail seminar.

Picked on April 19 at $38.59
Change since picked: + 0.00
Earnings Date 06/19/06 (unconfirmed)
Average Daily Volume: 332 thousand
 

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