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New Long Plays

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New Short Plays

Longs Drug Store - LDG - cls: 39.31 chg: -1.81 stop: 41.51

Company Description:
Headquartered in Walnut Creek, California, Longs Drug Stores Corporation is one of the most recognized retail drug store chains on the West Coast and in Hawaii. The Company operates 498 retail pharmacies and offers a wide assortment of merchandise focusing on health, wellness, beauty and convenience. Longs also provides pharmacy benefit management services and Medicare beneficiary prescription drug plans through its wholly-owned subsidiary, RxAmerica, LLC. (source: company press release or website)

Why We Like It:
The bearish trend in LDG looks ready for another leg down. The stock has been producing bearish reversal/failed rallies since early June. More recently the stock has been consolidating sideways between $39.75 and $41.50. Today's decline is a bearish breakdown under that trading range. The biggest risk we face is that LDG might try and bounce now that it has completely "filled the gap" from early March. The P&F chart is bearish with a projected $29 target. We are suggesting shorts with LDG under $40.00. More conservative traders may want to start with a tighter stop loss. We're starting our stop at $41.51. Our target is the $36.00-35.00 range. We do not want to hold over the earnings report on August 16th but currently that date is unconfirmed.

Picked on August 01 at $39.31
Change since picked: + 0.00
Earnings Date 08/16/06 (unconfirmed)
Average Daily Volume: 255 thousand
 

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