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Palm Inc. - PALM - close: 16.22 chg: +0.91 stop: 14.99

Company Description:
Palm, Inc., a leader in mobile computing, strives to put the power of computing in people's hands so they can access and share their most important information. The company's products for consumers, mobile professionals and businesses include Palm Treo(TM) smartphones, Palm handheld computers, and Palm LifeDrive(TM) mobile managers, as well as software, services and accessories. (source: company press release or website)

Why We Like It:
Normally we would not want to chase a big move like the one seen in PALM over the last couple of days. However, today's rally (+5.9%) was fueled by very strong volume (more than three times the norm) and today's rally is also a breakout through the top of a three-month trading range. Fueling the move was an analyst upgrade to "strong buy" and plenty of positive news from the company. We are suggesting long positions with PALM above $16.00. More conservative traders may want to wait for a move past the exponential 200-dma at $16.32. Our target is the $17.90-18.00 range near its 200-dma. More conservative traders might also want to use a stop loss closer to today's low (15.51). We would consider this a higher-risk play. FYI: The P&F chart points to a $20 target.

Picked on October 12 at $16.22
Change since picked: + 0.00
Earnings Date 12/20/06 (unconfirmed)
Average Daily Volume: 4.0 million


W&T Offshore - WTI - close: 29.53 chg: +1.21 stop: 28.35

Company Description:
Founded in 1983, W&T Offshore is an independent oil and natural gas company focused primarily in the Gulf of Mexico, including exploration in the deepwater, where it has developed significant technical expertise. W&T has grown through acquisition, exploitation and exploration and now holds working interests in over 200 fields in federal and state waters and a majority of its daily production is derived from wells it operates. (source: company press release or website)

Why We Like It:
The oil sector appears to have produced a bottom over the last month. A large number of stocks in the group, including WTI, have produced a double-bottom type pattern. Currently it looks like WTI is poised to breakout through the top of its recent trading range and resistance at the $30.00 level. The strong volume on today's rally was definitely bullish. Unfortunately, due to crude oil's volatile these days we feel the need to label this a more aggressive trade. We're suggesting a trigger to go long the stock at $30.21, which is just above its descending 50-dma. If triggered our target is the $34.00-35.00 range. We will be watching the 100-dma as potential resistance too. Please note we do not want to hold over the November earnings report.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/09/06 (unconfirmed)
Average Daily Volume: 534 thousand

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