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New Long Plays

None today.
 

New Short Plays

Alex. & Baldwin - ALEX - cls: 40.25 chg: -2.01 stop: 41.75

Company Description:
Alexander & Baldwin, Inc., headquartered in Honolulu, is engaged in ocean transportation and logistics services through its subsidiaries Matson Navigation Company, Inc. and Matson Integrated Logistics, Inc.; in real estate through A&B Properties, Inc.; and in food products through Hawaiian Commercial & Sugar Company and Kauai Coffee Company, Inc. (source: company press release or website)

Why We Like It:
It has been a rough couple of months for shares of ALEX after its intraday peak above the $50.00 level and its 200-dma back in May. The descent has formed into a bearish channel. Today's decline, inspired by an analyst downgrade, has put ALEX on the verge of another significant breakdown. If ALEX trades under round-number support at $40.00 it could be the beginning of its next leg lower. We're going to suggest a trigger at $39.95 to open bearish positions. Our short-term target is the $37.50-35.00 range. We're calling it short-term because we do not want to hold over the July 28th earnings report (an unconfirmed date). FYI: The latest (June) data put short interest at 6.5% of the 43 million-share float. The amount of short interest seems a little high.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume: 354 thousand

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Juniper Networks - JNPR - cls: 14.06 change: -0.08 stop: 15.01

Company Description:
Juniper Networks is the leader in enabling secure and assured communications over a single IP network. The company's purpose-built, high performance IP platforms enable customers to support many different services and applications at scale. Service providers, enterprises, governments and research and education institutions worldwide rely on Juniper Networks to deliver products for building networks that are tailored to the specific needs of their users, services and applications. (source: company press release or website)

Why We Like It:
We are going to play JNPR again. The company's recent earnings report did not inspire any buying interest. What the report did spark were a few analyst downgrades. Volume over the last couple of sessions has been pretty strong and today's trading saw JNPR produce a bearish failed rally near its falling 10-dma. We are going to suggest a trigger to short JNPR at $13.75, which is under the July 18th low. If triggered our target is the $12.00-10.00 range. Conservative traders can exit near $12 with us and more aggressive traders can aim lower. Speaking of conservative traders you might want to put your stop just above today's high (14.76). The P&F chart is still very bearish with an $8.50 target. FYI: The latest (June) data put short interest at 5.7% of the float.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/06 (confirmed)
Average Daily Volume: 13.1 million

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Teva Pharma. - TEVA - close: 30.21 change: -1.13 stop: 31.65

Company Description:
Teva Pharmaceutical Industries Ltd., headquartered in Israel, is among the top 20 pharmaceutical companies in the world and is the leading generic pharmaceutical company. The company develops, manufactures and markets generic and innovative human pharmaceuticals and active pharmaceutical ingredients, as well as animal health pharmaceutical products. Over 80% of Teva's sales are in North America and Europe. (source: company press release or website)

Why We Like It:
TEVA got FDA approval on a new arthritis drug (Meloxicam) today but the news failed to stop the stock from producing a big bearish engulfing candlestick pattern today. The stock has been weak for several weeks but right now TEVA is poised to breakdown under significant support at the $30.00 level. Today's candlestick pattern is normally viewed as a bearish reversal. We want to see some confirmation so we're suggesting a trigger to short the stock at $29.79, which is under the late June low. If triggered we're suggesting two targets. Our conservative target is the $27.00 level. Our aggressive target is the $25.50 level. We do not have a lot of time since we don't want to hold over the company's earnings report in early August. The fact that TEVA is headquartered in Israel probably doesn't inspire a lot of confidence in buyers considering the current Israeli-Hezbollah conflict. FYI: The number of shares short as a percentage of the float appears to be less than 1% but this is June data.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume: 7.4 million
 

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