Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
ADVNB None
ICON  
SLM  

New Long Plays

Advanta - ADVNB - close: 36.58 chg: +0.58 stop: 34.99

Company Description:
Advanta focuses on the small business market and related community, providing funding and support to the nation's small businesses and business professionals through innovative products and services. Using its direct marketing and information-based expertise, Advanta identifies potential customers and provides a high level of service tailored to the needs of small businesses. Advanta is one of the nation's largest issuers (through Advanta Bank Corp.) of MasterCard business credit cards to small businesses. Since 1951, Advanta has pioneered many of the marketing techniques common in the financial services industry today, including remote lending, and direct mail, affinity and relationship marketing. (source: company press release or website)

Why We Like It:
In spite of the profit taking in the last two weeks shares of ADVNB have not yet produced a P&F chart sell signal. The stock found support at its rising 100-dma and now shares are rebound. Volume on Friday's rally was above average. With the stock bouncing from support this looks like an attractive place to go long. We'll put our stop loss under the recent lows at $34.99. While we are suggesting long positions here more conservative traders may want to wait for a move over the 10-dma (36.93) or the 50-dma (37.07) before opening positions. Our target is the $39.85-40.00 range. Traders should note that short interest looks relatively high at 8.2% of ADVNB's 22 million-share float. That creates an opportunity for a short squeeze.

Picked on May 21 at $36.58
Change since picked: + 0.00
Earnings Date 04/26/06 (confirmed)
Average Daily Volume: 89 thousand

---

Iconix Brand - ICON - close: 17.38 chg: +0.53 stop: 15.99

Company Description:
Iconix Brand Group Inc., owns, licenses and markets a growing portfolio of consumer brands including CANDIE'S , BONGO , BADGLEY MISCHKA , JOE BOXER RAMPAGE and MUDD . The Company's brands touch every major segment of retail distribution from the luxury market to the mass market. Iconix, through its in-house advertising agency, advertises and markets its brands to continually drive greater consumer awareness and loyalty and licenses its brands to a network of leading retailers and manufacturers. (source: company press release or website)

Why We Like It:
Shares of ICON have been climbing higher in a stair-step pattern over the last several months. Given the recent bounce and the bullish turn in the stock's technical oscillators it looks like ICON may be ready for its next step higher. We are going to suggest long positions with the stock over $17.00 and our target will be the $19.75-20.00 range. We do expect some short-term resistance near $18.00. The P&F chart points to a $21.75 target.

Picked on May 21 at $17.38
Change since picked: + 0.00
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume: 498 thousand

---

SLM Corp. - SLM - close: 54.40 chg: +0.77 stop: 52.85

Company Description:
SLM Corporation, commonly known as Sallie Mae, is the nation's leading provider of education funding, managing nearly $127 billion in student loans for 9 million borrowers. Sallie Mae was originally created in 1972 as a government-sponsored entity (GSE) and terminated its ties to the federal government in 2004. The company remains the country's largest originator of federally insured student loans. Through its specialized subsidiaries and divisions, Sallie Mae also provides debt management services as well as business and technical products to a range of business clients, including colleges, universities and loan guarantors. (source: company press release or website)

Why We Like It:
Shares of SLM have garnered a lot of positive analyst comments in the last three weeks. Building on these upgrades the stock has produced a bullish pattern of higher lows. Shares have also broken out above its 50-dma and 200-dma. Aggressive traders may want to consider bullish positions with Friday's rally to a new six-week high. We want to see a bit more confirmation. We're suggesting a trigger to go long the stock at $54.75, which is just over technical resistance at its 100-dma (54.70). More conservative traders may want to wait for a move over $55.00 first. Our target is going to be the 57.40-57.50 range.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume: 2.0 million
 

New Short Plays

None today.
 

Premier Investor New Play Archives