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New Plays
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ASN None
PCH  
APC  
ESV  
RES  

New Long Plays

Archstone - ASN - close: 49.74 chg: +0.10 stop: 47.35

Company Description:
Archstone-Smith, an S&P 500 company, is a recognized leader in U.S. apartment investment and operations. With a current total market capitalization of $17.4 billion, the company's portfolio is concentrated in many of the most desirable neighborhoods in the Washington, D.C. metropolitan area, Southern California, the San Francisco Bay Area, the New York City metropolitan area, Boston, Chicago, Southeast Florida and Seattle. (source: company press release or website)

Why We Like It:
ASN looks poised to breakout over resistance at the $50.00 level. Actually the stock hit $50.01 on Friday and that was enough to produce a new triple-top breakout buy signal on its P&F chart, which currently points to a $70 target. We are going to suggest a trigger to go long the stock at $50.21. If triggered we will target a run into the $53.85-54.00 range. An alternate entry point would be on a pull back and bounce near the $48.50-49.00 region.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume: 989 thousand

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Potlatch - PCH - close: 39.39 chg: +0.74 stop: 36.99

Company Description:
Potlatch is a real estate investment trust (REIT) with 1.5 million acres of forestland in Idaho, Minnesota, Arkansas and Oregon. Through a taxable subsidiary, the company also operates 13 manufacturing facilities that produce lumber and panel products and bleached pulp products, including paperboard and tissue products. (source: company press release or website)

Why We Like It:
Friday morning PCH was upgraded to a "buy" and the news helped shares breakout from a two-week trading range and above its 50-dma and its trendline of lower highs. The $40.00 mark might be round-number, psychological resistance and normally we'd wait for a breakout above resistance but PCH has enough positive things happening for it that we're suggesting a long right here. More conservative traders may want to wait for the move over $40.00. Our short-term target will be the $43.00-43.50 range. The P&F chart currently points to a $67 target.

Picked on June 04 at $39.39
Change since picked: + 0.00
Earnings Date 07/17/06 (unconfirmed)
Average Daily Volume: 362 thousand

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Play Editor's note: We have been and remain long-term bullish on the oil sector. More importantly we've grown short-term bullish on oil stocks. The rising tensions with Iran, the violence in Nigeria against the oil workers and structures there and the upcoming summer driving season have all helped push crude oil back above $72.00 a barrel. The technicals on crude oil has turned bullish too after a four-week consolidation. Meanwhile many of the oil stocks, that were punished hard in the month of May, are rebounding strongly. We are not suggesting that readers buy positions in each oil stock profiled this weekend. Find the one or two that you like best or consider something like the IXC ishares.

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Anadarko Petrol. - APC - close: 50.43 chg: +0.47 stop: 47.95

Company Description:
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. (source: company press release or website)

Why We Like It:
The consolidation appears to be over in APC. Shares have built a bottom near the 200-dma over the last three weeks. The weekly chart has produced a candlestick pattern that is normally interpreted as a bullish reversal. Meanwhile the MACD indicator has produced a new buy signal. We are going to suggest long positions with APC above $50.00. We do see some minor resistance at $51.00 so more conservative traders may want to wait for a move over $51.00 before initiating plays. Our target is the $54.90-55.00 range. More aggressive traders may want to aim higher.

Picked on June 04 at $50.43
Change since picked: + 0.00
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume: 4.7 million

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Ensco Intl. - ESV - close: 51.71 chg: +0.98 stop: 47.35

Company Description:
ENSCO, headquartered in Dallas, Texas, owns and operates a modern fleet of offshore drilling rigs servicing the petroleum industry on a global basis. (source: company press release or website)

Why We Like It:
The rebound in ESV has turned serious. The stock has reversed its P&F chart into a new buy signal. Plus, the bounce has pushed shares back above resistance at the $50.00 level and its 100-dma. Meanwhile its MACD on the daily chart has produced a new buy signal. We are suggesting bullish positions with ESV above $50.00. Our target is the $57.50-58.00 range, near its highs. The P&F chart currently points to a $62 target.

Picked on June 04 at $51.71
Change since picked: + 0.00
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume: 2.8 million

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RPC Inc. - RES - close: 25.04 change: +0.76 stop: 22.45

Company Description:
RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of Mexico, mid-continent, southwest and Rocky Mountain regions, and in selected international markets. (source: company press release or website)

Why We Like It:
RES has seen some huge swings over the past twelve months. It looks like the current consolidation has bottomed at its 200-dma and now shares are poised to rally higher again. The technical picture is turning bullish and the Thursday-Friday rally is a breakout from its two-week base-building pattern. We are suggesting longs at current levels. Readers can look for more confirmation with a move over the 50-dma or wait for a dip back toward the $24.00 level, which looks like minor support. Our target is the $29.50-30.00 range. More aggressive traders may want to aim toward the mid-thirties.

Picked on June 04 at $25.04
Change since picked: + 0.00
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume: 618 thousand
 

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