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New Plays
Long Plays
Short Plays
ASFI CV
ASVI KDE
ELOS MDT
ETP MSEX
VZ NTMD
  RBAK
  SNHY
  TLAB

New Long Plays

Asta Funding - ASFI - close: 35.16 change: +0.98 stop: 33.95

Company Description:
Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer receivable asset management company that specializes in the purchase, management and liquidation of performing and non-performing consumer receivables. (source: company press release or website)

Why We Like It:
ASFI has spent the last five weeks consolidating lower and now shares have reached their rising trendline of support. Coincidentally the stock has already reached its trendline of support on the Point & Figure chart. While it looks like ASFI is trying to bounce we want to see some confirmation. Our market bias is not very optimistic and ASFI does have potential resistance at its 10-dma and 50-dma still overhead. We're going to suggest a trigger at $36.01 to go long the stock. If triggered our target is the $39.95-40.00 range.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/08/06 (unconfirmed)
Average Daily Volume: 165 thousand

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A.S.V.Inc. - ASVI - close: 21.20 change: +1.25 stop: 19.45

Company Description:
ASV designs, manufactures and sells rubber track loaders and related accessories, attachments and traction products. ASV also manufactures rubber track undercarriages, some of which are a primary component on Caterpillar's Multi Terrain Loaders. (source: company press release or website)

Why We Like It:
Shares of ASVI have been slaughtered over the last couple of months. The stock is way oversold and due for a bounce and it looks like the rebound has begun. ASVI broke out from its bearish channel and Friday saw shares breakout past round-number resistance at the $20.00 level on strong volume. Readers can choose to go long the stock right here. However, our preferred entry point would be to wait for a dip back toward the $20.50-20.00 region. Broken resistance at $20.00 should now act as new support. We are a little concerned about the simple 50-dma (currently 24.43) acting as overhead resistance so we're going to target the $23.50-24.00 range for now. We do not want to hold over the company's earnings report in late July.

Picked on June 18 at $21.20
Change since picked: + 0.00
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume: 463 thousand

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Syneron Med. - ELOS - close: 21.05 change: +0.55 stop: 19.99

Company Description:
Syneron Medical Ltd. develops, manufactures and distributes medical aesthetic devices that are powered by elos, the combined-energy technology of bi-polar radio frequency and light. Founded in 2000, the corporate, R&D, and manufacturing headquarters for Syneron Medical Ltd. is located in Israel. (source: company press release or website)

Why We Like It:
ELOS is another stock that looks significantly oversold but appears to have put in a bottom. The stock has spent the last three weeks under resistance at the $21.35 level. We want to catch any upward breakout but we want some confirmation so we're suggesting a trigger to go long the stock at $21.51. If triggered our target will be the $23.85-24.00 level. We may have to adjust this target to account for the descending 50-dma, which may act as resistance.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume: 615 thousand

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Energy Transfer - ETP - close: 44.25 chg: +1.07 stop: 41.99

Company Description:
Energy Transfer Partners, L.P. is a publicly traded partnership owning and operating a diversified portfolio of energy assets. The Partnership's natural gas transportation and storage operations include natural gas gathering and transportation pipelines, natural gas treating and processing assets located in Texas and Louisiana, and three natural gas storage facilities located in Texas. This includes approximately 11,700 miles of pipeline in service, plus an additional 550 miles under construction. The Partnership is one of the three largest retail marketers of propane in the United States, serving more than 1 million customers from approximately 440 customer service locations in 40 states extending from coast to coast, and Alaska. (source: company press release or website)

Why We Like It:
We're adding ETP as a bullish candidate due to its relative strength. The stock has ignored the market's weakness and the profit taking across much of the oil and energy sectors. Instead traders used the recent dip toward $42.00 and its rising 50-dma as an entry point. Friday saw ETP push past its short-term trendline of lower highs (resistance) on above average volume, which is bullish. There is short-term resistance at $46.00 but our target is the $47.50-48.00 range. We do not want to hold over the company's earnings report in July but unfortunately we don't have a confirmed date yet. It could be July 10th through the 20th.

Picked on June 18 at $44.25
Change since picked: + 0.00
Earnings Date 07/10/06 (unconfirmed)
Average Daily Volume: 149 thousand

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Verizon Comm. - VZ - close: 32.54 change: +0.35 stop: 31.24

Company Description:
Verizon Communications Inc., a Dow 30 company, is a leader in delivering broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, serving 53 million customers nationwide. Verizon Business operates one of the most expansive wholly-owned global IP networks. Verizon Telecom is deploying the nation's most advanced fiber-optic network to deliver the benefits of converged communications, information and entertainment services to customers. Based in New York, Verizon has a diverse workforce of more than 250,000 and generates annual consolidated operating revenues of approximately $90 billion. (source: company press release or website)

Why We Like It:
The rally continues in VZ. The stock spent the last couple of weeks consolidating sideways between support at $31.25 and resistance at its 200-dma just north of $32.00. Now in the last two days VZ has broken out above the $32.00 level, its 50-dma and its simple 200-dma on volume well above its daily average. All of this is in addition to a breakout from its bearish channel (see chart). The stock may still have resistance between $32.50 and $33.00 at its exponential 200-dma and the 100-dma but we're going to suggest bullish positions here above $32.00. More conservative traders can choose to wait for further confirmation. A dip and bounce near $32.00-31.75 could also be used as a new entry point. Our target is the $34.75-35.00 range. We do not want to hold over the company's late July earnings report.

Picked on June 18 at $32.54
Change since picked: + 0.00
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume: 9.8 million
 

New Short Plays

Cntrl Vermont Pub.Srv - CV - cls: 17.02 change: -0.22 stop: 18.01

Company Description:
CVPS, founded in 1929, is Vermont's largest electric utility, serving more than 151,000 customers. (source: company press release or website)

Why We Like It:
If you read the market wrap this weekend then you already know about the Russell index rebalancing. After the market close on Friday CV appeared on the list of stocks that were removed from the Russell 3000. Funds that track the Russell will now need to sell shares of CV making the stock an attractive bearish candidate. Even without the removal from the Russell shares of CV were looking weak with a steady trend of lower highs. The MACD is flirting with a new sell signal and the Point & Figure chart already sports a triple-bottom breakdown sell signal with a $12.00 target. We are suggesting shorts here under $17.50. More conservative traders may want to wait for a move under $16.50 first. We would NOT open positions if CV gaps down on Monday under $16.45. Our target is the $15.50 level.

Picked on June 18 at $17.02
Change since picked: + 0.00
Earnings Date 08/07/06 (unconfirmed)
Average Daily Volume: 46 thousand

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4 Kids Enter. - KDE - close: 15.66 change: -0.26 stop: 16.05

Company Description:
Headquartered in New York City with international offices in London, 4Kids Entertainment, Inc. is a global provider of children's entertainment and merchandise licensing. 4Kids, through its wholly owned subsidiaries, provides domestic and international merchandise licensing; product development; television, film, music and home video production and distribution; media planning and buying; and Web site development. For further information, please visit the Company's Web site at www.4KidsEntertainment.com and www.4Kids.TV. (source: company press release or website)

Why We Like It:
KDE is another stock on the list of equities removed from the Russell 3000. Here's the link:
http://www.russell.com/US/Indexes/US/Reconstitution/recon_deletions.asp
Shares of KDE were already looking weak and flirting with a breakdown under significant support in the $15.50 region. Now that it's being kicked off the Russell indices the stock should feel more selling pressure. The P&F chart is already bearish and points to an $11.50 target. We are suggesting a trigger to short KDE at $15.45. If triggered our target is the $12.60-12.50 range. We do NOT want to open positions if KDE gaps down on Monday under $15.00.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/09/06 (unconfirmed)
Average Daily Volume: 113 thousand

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Medtronic - MDT - close: 50.25 change: -0.28 stop: 51.01

Company Description:
Medtronic, Inc., headquartered in Minneapolis, is the global leader in medical technology - alleviating pain, restoring health, and extending life for millions of people around the world. (source: company press release or website)

Why We Like It:
The oversold bounce in MDT appears to be rolling over under the $52.00 level. Technicals have turned sour again with a new MACD sell signal. The P&F chart is bearish and points to a $36 target. We suspect that MDT will soon breakdown again under $50.00 and its 50-dma. Thus we're suggesting a trigger to short the stock at $49.49. We do expect a bounce near support at $48.00 but our target is going to be the $45.50-45.00 range. We do not want to hold over the August earnings report.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/22/06 (unconfirmed)
Average Daily Volume: 10.8 million

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Middlesex Water - MSEX - close: 17.22 change: +0.05 stop: 17.75

Company Description:
The Middlesex Water family of companies is committed to providing quality water and wastewater service to residents in parts of New Jersey and Delaware. (source: company press release or website)

Why We Like It:
MSEX is another stock being kicked off the Russell indices. Shares were already looking weak with a drop toward significant support at the $17.00 level. We are going to suggest a trigger at $16.90 to catch a breakdown under support. The weekly chart shows a big bearish head-and-shoulders pattern that points to an $11.00 target. We're going to target a decline into the $15.15-15.00 range. The P&F chart is bearish with a bearish triangle breakdown sell signal pointing to a $12.00 target. Please note that we do NOT want to open positions should MSEX gap down on Monday morning under $16.50.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/08/06 (confirmed)
Average Daily Volume: 28 thousand

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NitroMed - NTMD - close: 5.07 change: -0.14 stop: 5.71

Company Description:
NitroMed of Lexington, Massachusetts is an emerging pharmaceutical company and the maker of BiDil (isosorbide dinitrate/hydralazine hydrochloride), an orally administered medicine available in the United States for the treatment of heart failure in self-identified black patients. (source: company press release or website)

Why We Like It:
NTMD is another stock being removed from the Russell indices and we expect to see renewed selling pressure. The stock was already in a very defined bearish pattern and shares are in the process of rolling over (failed rally) under resistance at its 50-dma. We are suggesting shorts with NTMD under $5.50. More conservative traders may want to use a trigger at $4.95. Our target is the $3.70-3.60 range. More aggressive traders may want to aim lower. We do NOT want to open positions if NTMD gaps down on Monday morning under $4.75.

Picked on June 18 at $ 5.07
Change since picked: + 0.00
Earnings Date 07/31/06 (unconfirmed)
Average Daily Volume: 710 thousand

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Redback Networks - RBAK - cls: 20.39 chg: -0.31 stop: 21.01

Company Description:
Redback Networks Inc., a leading provider of next-generation broadband networking systems, enables carriers and service providers to build Smart Broadband Networks that are personalized, adaptive and efficient. (source: company press release or website)

Why We Like It:
We suspect that the recent bounce in RBAK is just that - a bounce. The stock has broken its longer-term up trend and now the rebound is starting to fail under the $21.00 level and its 10-dma. We don't believe the sell-off is over yet. We are suggesting a trigger to short RBAK at $19.75. If triggered our target is the $16.50 level, which is where we expect RBAK to find support with its rising 200-dma. The P&F chart is bearish and points to a $12.00 target. We do not want to hold over the mid July earnings report.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume: 1.8 million

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Sun Hydraulics - SNHY - cls: 18.10 chg: -0.22 stop: 18.51

Company Description:
Sun Hydraulics Corporation is a leading designer and manufacturer of high performance screw-in hydraulic cartridge valves and manifolds for worldwide industrial and mobile markets. (source: company press release or website)

Why We Like It:
SNHY is another stock being removed from the Russell indices. Funds tracking the Russell will need to sell their shares of SNHY creating new downward pressure on the stock. We're a little concerned about the bullish reversal candlestick on the weekly chart so we're going to suggest a trigger. Our trigger to short SNHY will be $17.45. We do not want to open positions should SNHY gap down on Monday morning under $17.00. Our target is the $15.10-15.00 range. The P&F chart looks pretty bearish with a $7.00 target.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/08/06 (unconfirmed)
Average Daily Volume: 89 thousand

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Tellabs - TLAB - close: 14.32 change: -0.19 stop: 15.01

Company Description:
Tellabs advances telecommunications networks to meet the evolving needs of end-users. Broadband solutions from Tellabs enable service providers to deliver high-quality voice, video and data services over wireline and wireless networks around the world. (source: company press release or website)

Why We Like It:
TLAB is an aggressive short play. We're labeling it aggressive because the P&F chart is still in a buy signal and the weekly chart's newest candlestick is a potential bullish reversal. We're going to suggest shorts with TLAB under $14.50. Our target is the $12.50 mark just above the simple 200-dma. More conservative traders may want to wait for a decline under $14.00 before opening plays but then we'd use a tighter stop if you wait for more confirmation. If TLAB doesn't trade lower right away we might pull the plug quickly. We do not want to hold over the company's July earnings report.

Picked on June 18 at $14.32
Change since picked: + 0.00
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume: 5.9 million
 

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