Option Investor
New Plays
Printer friendly version

New Long Plays

None today.

New Short Plays

Core Labs - CLB - close: 55.70 change: -2.45 stop: 60.01

Company Description:
Core Laboratories N.V. is a leading provider of proprietary and patented reservoir description, production enhancement, and reservoir management services used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. (source: company press release or website)

Why We Like It:
The bounce attempt in the oil stocks has failed. Monday saw a sector-wide bearish reversal and today just confirmed it. CLB fell through technical support at its 50-dma and looks poised to run toward its 100-dma near $50.00. We are suggesting shorting CLB with the stock under $57.50. Our target is the 100-dma but since it's rising we'll aim for the $51.50 mark. The P&F chart is bearish and points to a $49.00 target. Readers should be aware that CLB does have a 2-for-1 stock split coming up on July 7th.

Picked on June 07 at $55.70
Change since picked: + 0.00
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume: 225 thousand


Drew Industry - DW - close: 29.67 chg: -0.00 stop: 30.75

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. (source: company press release or website)

Why We Like It:
We did not have any luck playing the bounce from its 200-dma so we're going to try shorting DW now that shares have broken down. The bearish reversal has been pretty sharp and DW broke support at the $30.00 level and its simple 200-dma in the last couple of days. The MACD has produced a new sell signal while the P&F chart was already bearish and points to a $19 target. We'll try and play with a tight stop just above today's high. We like today as a new entry point for bearish positions due to the failed rally at the 200-dma. Our only concern is the lack of volume on today's session. Our first target is the $27.55-27.45 range.

Picked on June 07 at $29.67
Change since picked: + 0.00
Earnings Date 05/01/06 (confirmed)
Average Daily Volume: 129 thousand

Premier Investor New Play Archives