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New Plays
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PALM None
RYAAY  
SWS  
UST  

New Long Plays

Palm Inc. - PALM - close: 17.95 chg: +0.91 stop: 17.24

Company Description:
Palm, Inc., a leader in mobile computing, strives to put the power of computing in people's hands so they can access and share their most important information. The company's products for consumers, mobile professionals and businesses include Palm handheld computers, Palm Treo(TM) smartphones, Palm LifeDrive(TM) mobile managers, as well as software, services and accessories. (source: company press release or website)

Why We Like It:
It looks like PALM has produced a short-term bottom over the last two weeks. Shares are beginning to rebound higher and the stock closed over technical resistance at its simple 200-dma today. RSI and stochastic indicators are bullish and the MACD is nearing a new buy signal. We want to see more confirmation so we're suggesting a trigger to go long at $18.26, which is above Thursday's high. If triggered at $18.26 then we'll target a run into the $19.95-20.00 range. More aggressive traders may want to aim higher toward the 50-dma (currently 21.26). The big volume spike today (22.7 million shares) was due to PALM being added to the S&P 400 index after the closing bell tonight. We do not want to hold over the June 29th earnings report.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 06/29/06 (confirmed)
Average Daily Volume: 4.0 million

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Ryanair - RYAAY - close: 51.34 change: +1.54 stop: 49.95

Company Description:
Ryanair was Europe's original low fares airline and is still Europes largest low fares carrier. In the current year Ryanair will carry over 35m. passengers on 344 low fare routes across 22 European countries. We have 16 European bases and a fleet of over 100 brand new Boeing 737-800 aircraft, with firm orders for a further 125 new aircraft, which will be delivered over the next seven years. These additional aircraft will allow Ryanair to double in size to over 70m. passengers p.a. by 2012. Ryanair currently employs a team of 2,700 people, comprising over 25 different nationalities. (source: company press release or website)

Why We Like It:
It's been a long time since we played an airline stock. The group has been struggling with high oil (fuel) prices. We like RYAAY because the stock has been out performing its peers recently and just broke out from a consolidation pattern and resistance at $51.00, its 50-dma, 200-dma and exponential 200-dma. We are going to suggest long positions with RYAAY above $50.00 (preferably above the 50-dma). Our target is the 53.90-54.00 range, which is where the stock is likely to encounter its trendline of resistance (see chart). Keep a wary eye on the 100-dma. If shares don't push past the 100-dma soon we may bail out quickly. FYI: a move over $52.00 would produce a new P&F chart buy signal.

Picked on June 08 at $51.34
Change since picked: + 0.00
Earnings Date 07/31/06 (unconfirmed)
Average Daily Volume: 304 thousand

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SWS Group - SWS - close: 25.19 chg: +0.68 stop: 23.79

Company Description:
SWS Group, Inc. is a Dallas-based holding company offering a broad range of investment and financial services through its subsidiaries. The company's common stock is listed and traded on the New York Stock Exchange under the symbol SWS. Subsidiaries of the company include Southwest Securities, Inc., Southwest Securities, FSB, SWS Financial Services, Inc. and Southwest Insurance Agency. (source: company press release or website)

Why We Like It:
The XBD broker-dealer index appears to have produced a double-bottom pattern, which could be signaling an end to the sell-off for stocks in that sector. Shares of SWS are ahead of the game with its bottom formed over a week ago. The stock broke out on June 1st only to failed at resistance near $26.00 and its 50-dma. That resistance is still there but if the major market indices continue today's rebound into tomorrow and the investment-related stocks build on the double-bottom pattern then SWS could power through resistance. If SWS produces a sharp failed rally near $26.00 again we'll probably jump out so traders should keep at least one foot aimed at the exit door. More conservative traders may just want to wait for a move over $26.00 before initiating plays. Our target will be the $28.00-28.50 range.

Picked on June 08 at $25.19
Change since picked: + 0.00
Earnings Date 05/09/06 (confirmed)
Average Daily Volume: 108 thousand

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UST Inc. - UST - close: 44.71 chg: +1.00 stop: 42.99

Company Description:
UST Inc. is a holding company for its principal subsidiaries: U.S. Smokeless Tobacco Company and International Wine & Spirits Ltd. U.S. Smokeless Tobacco Company is a leading producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Red Seal and Husky. Other consumer products marketed by the company include premium wines sold nationally through the Chateau Ste. Michelle, Columbia Crest, Conn Creek and Villa Mt. Eden wineries, as well as sparkling wine produced under the Domaine Ste. Michelle label. (source: company press release or website)

Why We Like It:
UST is looking pretty bullish here with a fresh breakout and positive technicals. The stock probably weathered the market sell-off better than most since investors tend to see tobacco stocks as defensive plays. The MACD just turned bullish again. The RSI and stochastic indicators are bullish again. The P&F chart looks very bullish with a $53.00 target. We are suggesting long positions with UST above $44.00. We'll start the play with a stop loss at $42.99 but more conservative traders might want to consider a tighter stop near $43.50. Our target will be the $47.50-48.00 range. We do not want to hold over the July earnings report.

Picked on June 08 at $44.71
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume: 1.2 million
 

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