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New Plays
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CGX None
NCS  

New Long Plays

Consolidated Graphics - CGX - cls: 52.43 chg: +1.18 stop: 50.99

Company Description:
Consolidated Graphics, Inc. is the nation's leading commercial sheetfed, web and digital printing company with a coast-to-coast presence spanning 26 states. (source: company press release or website)

Why We Like It:
There is no way to know if today's market rally is a genuine bullish reversal or just a one-day relief rally due to oversold conditions. That's why we're adding a play with a trigger to open positions. If the market sees some positive follow through on Wednesday's gains then maybe things are turning around. That could lead to shares of CGX breaking out from its three-week trading range. We're suggesting a trigger to go long the stock at $53.01. If triggered our target is the $57.00-57.50 range. We do not want to hold over the early August earnings report.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume: 500 thousand

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NCI Bldg Sys. - NCS - cls: 51.50 change: +1.91 stop: 49.75

Company Description:
NCI Building Systems, Inc. is one of North America's largest integrated manufacturers of metal products for the nonresidential building industry. The Company operates 44 manufacturing and distribution facilities located in 17 states, as well as Mexico and Canada. (source: company press release or website)

Why We Like It:
It looks like NCS may have produced a bullish double-bottom pattern. The intraday rebound from Tuesday's low and today's rally looks tempting. However, the stock is still trading under its 200-dma and its short-term trend of lower highs. We want to see more confirmation that NCS is really reversing higher. That's why we're suggesting a trigger to go long the stock at $52.25. More conservative traders may want to wait for a move over $52.50. We do expect some resistance near $55.00 and its 50-dma but we're going to aim for the $58.00-60.00 range. We do not want to hold over the late August earnings report.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/31/06 (unconfirmed)
Average Daily Volume: 370 thousand
 

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