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New Plays
Long Plays
Short Plays
SGY COH
UHS  

New Long Plays

Stone Energy - SGY - close: 47.41 chg: +0.85 stop: 45.95

Company Description:
Stone Energy is an independent oil and gas company headquartered in Lafayette, Louisiana, and is engaged in the acquisition and subsequent exploitation, development, operation and production of oil and gas properties located in the conventional shelf of the Gulf of Mexico ("GOM"), the deep shelf of the GOM, the deep water of the GOM, several basins of the Rocky Mountains, and the Williston Basin. (source: company press release or website)

Why We Like It:
SGY recently reported earnings and completely missed Wall Street's estimates but the company turned in better than expected revenues. Meanwhile in spite of the recent pull back in crude oil many of the oil stocks have managed to hold on to a good chunk of their gains. Now we're seeing some traders step in and buy the dip ahead of the summer driving season and the ongoing tensions with Iran. We like SGY right here because it's bouncing from support at the $46.00 level and its rising channel. However, some traders may want to remain cautious. The MACD on the daily chart is currently bearish. Yet the Point & Figure chart is bullish and points to a $76 target. More conservative traders may want to wait for a new rise past the simple 200-dma at 47.95 before initiating plays. Our short-term target will be resistance in the $51.25-51.50 range. More aggressive traders may want to aim higher.

Picked on May 07 at $47.41
Change since picked: + 0.00
Earnings Date 05/03/06 (confirmed)
Average Daily Volume: 560 thousand

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Universal Health - UHS - close: 51.69 chg: +0.59 stop: 49.95

Company Description:
Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico. (source: company press release or website)

Why We Like It:
It looks like the sideways consolidation in shares of UHS may be coming to an end. The stock has been bouncing around the $48-52 range for almost three months and is currently poised to breakout higher. The P&F chart is bullish and points to a $64 target. We are going to suggest a trigger to go long at $52.15. If triggered we will target the $56.00-57.00 range, which has been significant resistance in the past. We do anticipate some resistance near $54.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/27/06 (confirmed)
Average Daily Volume: 571 thousand
 

New Short Plays

Coach Inc. - COH - close: 31.86 chg -1.17 stop: 33.51

Company Description:
Coach, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men, including handbags, women's and men's small leathergoods, business cases, weekend and travel accessories, footwear, watches, outerwear, sunwear, and related accessories. Coach is sold worldwide through Coach stores, select department stores and specialty stores, through the Coach catalog in the U.S. (source: company press release or website)

Why We Like It:
The long-term up trend in COH is in jeopardy. Investors were not pleased with the recent earnings report/guidance in late April and the oversold bounce just failed at its simple 200-dma near $34.00. Friday the stock produced a big display of relative weakness with a 3.5% decline on very big volume! We are going to suggest a trigger at $31.45 to short the stock. If triggered our target will be the $28.25-27.50 range although more aggressive traders may want to aim lower.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/25/06 (confirmed)
Average Daily Volume: 2.3 million
 

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