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New Plays
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  USU
  VIVO

New Long Plays

None today.
 

New Short Plays

Cascade - CAE - close: 35.69 change: -0.76 stop: 36.76

Company Description:
During the past 60 years, the field of materials handling has developed into a highly sophisticated and important part of industry. Cascade has played a significant part in this growth and development. From our beginnings as a small machine shop in the early 1940's to the leading worldwide manufacturer that we are today, Cascade continues to grow as the premier supplier of lift truck attachments and related products. (source: company press release or website)

Why We Like It:
Industrial goods and more specifically heavy or construction machinery stocks have not been doing so great. Even Caterpillar (CAT), which had a pretty good earnings report, saw investors sell the news. Shares of CAE have been struggling ever since the big sell-off following its April earnings report. More recently the stock has produced a bearish reversal/failed rally pattern under its 50-dma in the last few days. We think CAE may be poised to breakdown into a new leg lower. Our plan is to use a trigger at $34.90 to catch any breakdown under support in the $35 region. If triggered our target is the $31.50-31.00 range. The Point & Figure chart is more bearish with a $22.00 target. We do not want to hold over its earnings report in September.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/07/06 (unconfirmed)
Average Daily Volume: 87 thousand

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USEC - USU - close: 10.84 change: -0.33 stop: 11.26

Company Description:
A global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plants. Revenues in 2005 were $1.56 billion. USEC headquarters are in Bethesda, Maryland. (source: company press release or website)

Why We Like It:
Long-term we're actually bullish on uranium fuel providers but short-term the whole non-metallic mining industry has been pretty weak. In the last couple of weeks USU has produced a failed rally near $12.00 and again last week near its 50-dma and under its 200-dma. The technical picture is bearish. The Point & Figure chart is very bearish with a projected $6.50 target. We don't have a lot of time if we're going to avoid the early August earnings report but we suspect that USU will dip to the $10.00 level again. We're suggesting shorts with USU under $11.00. Our target is the $10.05-10.00 range. More aggressive traders may want to use a wider stop loss. Please note that the short interest is relatively high making this a higher-risk play. The most recent (June) data put short interest at 11.6% of the 86 million-share float.

Picked on July 23 at $10.84
Change since picked: + 0.00
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume: 1.0 million

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Meridian Biosci. - VIVO - close: 20.94 chg: -1.02 stop: 23.05

Company Description:
Meridian Bioscience, a fully integrated life science company, manufactures, markets and distributes a broad range of innovative diagnostic test kits, purified reagents and related products. (source: company press release or website)

Why We Like It:
VIVO's upward momentum began to stall in April and since then the stock has been trading mostly sideways with a bearish trend of lower highs. That changed this past week. The company reported earnings on July 20th and revenues came in under analyst estimates. Plus, the company guided lower for the next quarter under analyst estimates. The reaction has been sharp with big volume on the sell-off. VIVO has broken down under support near $22.00 and its simple and exponential 200-dma's. The Point & Figure chart has produced a new triple-bottom breakdown sell signal with a $16 target. We are suggesting shorts with VIVO under $22.00. Our target is the $18.15-18.00 range since the $18.00 level was support last year. We would not be surprised by an oversold bounce so readers can use a failed rally under $22.00-22.50 as a new entry point for bearish plays.

Picked on July 23 at $20.94
Change since picked: + 0.00
Earnings Date 07/20/06 (confirmed)
Average Daily Volume: 175 thousand
 

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