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New Plays
Long Plays
Short Plays
BAM
DW  
MUR  

New Long Plays

Brookfield Asset Mgt - BAM - cls: 40.83 chg: +1.92 stop: 38.49

Company Description:
Brookfield Asset Management Inc. is an asset management company. Focussed on property, power and infrastructure assets, the company has approximately $50 billion of assets under management and is co-listed on the New York and Toronto stock exchanges under the symbol BAM. (source: company press release or website)

Why We Like It:
The May sell-off in stocks was pretty tough on BAM with a drop from $44 to under $38.00 at its lowest. Shares had fallen out of its long-term rising channel. However, today's sharp rally, on top of Wednesday's intraday bounce from support near $38.00, has put BAM back into its rising trend. As you might expect the short-term technical oscillators are turning positive. Normally we don't like to chase a move this big (+4.9% on Thursday) but the major averages look poised to move higher so we'll hop on the band wagon. Our goal will be the $43.85-44.00 range.

Picked on May 25 at $40.83
Change since picked: + 0.00
Earnings Date 04/28/06 (confirmed)
Average Daily Volume: 473 thousand

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Drew Industry - DW - close: 31.62 chg: +0.68 stop: 30.19

Company Description:
Drew Industries, through its wholly owned subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes. The company's products include vinyl and aluminum windows and screens, doors, chassis, chassis parts, RV slide-out mechanisms and power units, bath and shower units, axles, steps, electric stabilizer jacks, and trailers for hauling equipment, boats, personal watercrafts and snowmobiles, as well as chassis and windows for modular homes and offices. From 47 factories located throughout the United States and one factory in Canada, Drew Industries serves most major national manufacturers of RVs and manufactured homes in an efficient and cost-effective manner. (source: company press release or website)

Why We Like It:
Shares of DW have spent the last two weeks consolidating sideways in a narrow trading range above technical support at its simple 200-dma. Now that the market is rebounding shares of DW are breaking out from its range. The MACD has produced a new buy signal and short-term technicals are improving. The stock does have a bearish P&F chart, which was produced with the month of May sell-off, but that doesn't mean shares can't bounce back toward $34.00. We are going to suggest positions here with the stock over $31.50. More conservative traders might want to wait for a move over $32.00. Our target is the $33.75-34.00 range since the 50-dma and 100-dma are converging on that area and these two moving averages are likely to be overhead resistance.

Picked on May 25 at $31.62
Change since picked: + 0.00
Earnings Date 05/01/06 (confirmed)
Average Daily Volume: 137 thousand

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Murphy Oil - MUR - close: 51.53 chg: +1.24 stop: 48.75

Company Description:
Today, Murphy Oil Corporation is a worldwide oil and gas exploration and production company with refining and marketing operations in the United States and the United Kingdom and crude oil and natural gas exploration and production operations in Canada. (source: company press release or website)

Why We Like It:
Oil stocks are on the rebound and strength in crude oil certainly doesn't hurt the bulls' argument for further gains. Shares of MUR have been consolidating sideways with a trend of lower highs and higher lows. We believe that the breakout is going to be higher but we want to see it first. We're going to suggest a trigger to go long the stock at $52.55, which would be a breakout of its resistance trendline (see chart). Our target will be the $57.50-60.00 range. Currently the P&F chart points to a $73 target.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume: 1.3 million
 

New Short Plays

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