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PTRY HRL

New Long Plays

The Pantry - PTRY - close: 46.86 chg: +1.46 stop: 43.99

Company Description:
Headquartered in Sanford, North Carolina, The Pantry, Inc. is the leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated convenience store chains in the country, with net sales for fiscal 2005 of approximately $4.4 billion. As of June 29, 2006, the Company operated 1,499 stores in eleven states under select banners including Kangaroo Express(SM), our primary operating banner. (source: company press release or website)

Why We Like It:
PTRY is breaking out higher from a four-week consolidation pattern. The stock's four-month trend is currently bearish but shares appear to have produced a significant bottom over the last month. Today's 3.2% rally was fueled by better than average volume and PTRY broke out through the top of its trading range at resistance near $46.00. The move looks like a buy signal although the P&F chart is still bearish. We do see potential resistance near $50.00 and its 50-dma so we're setting our initial target in the $49.85-50.00 range. More conservative traders might want to use a tighter stop loss near $45.00. Broken resistance at $46.00 should now act as short-term support.

Picked on August 31 at $46.86
Change since picked: + 0.00
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume: 269 thousand
 

New Short Plays

Hormel Foods - HRL - close: 36.65 chg: +0.13 stop: 37.25

Company Description:
Hormel Foods Corporation is a multinational manufacturer and marketer of consumer-branded meat and food products, many of which are among the best known and trusted in the food industry. (source: company press release or website)

Why We Like It:
The P&F chart for HRL is still bullish but short-term trading action and weekly technical indicators suggest the trend has changed. The stock produced a huge bearish reversal on August 24th as investors reacted to its earnings report. The stock produced an oversold bounce that failed near its 50-dma. We're only looking for a short-term decline toward technical support near its 200-dma. We'll put a stop loss above the recent bearish reversal and target the $35.00-34.50 range.

Picked on August 31 at $36.65
Change since picked: + 0.00
Earnings Date 11/23/06 (unconfirmed)
Average Daily Volume: 331 thousand
 

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