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New Plays
Long Plays
Short Plays
HSC None
HNZ  
OIS  
PEIX  

New Long Plays

HARSCO - HSC - close: 82.02 change: +0.44 stop: 79.45

Company Description:
Harsco Corporation is a diversified, worldwide company with four market-leading business groups that provide mill services, access services, engineered products and services, and gas containment and control technologies to customers around the globe. The Company employs approximately 21,000 people in 45 countries of operation and recorded 2005 sales of $2.8 billion. (source: company press release or website)

Why We Like It:
We normally try not to play stocks that are price more than $50 or $60 but HSC looks like a tempting candidate. Shares of HSC are poised to breakout over resistance in the $82.60-82.75 region. Technical indicators are improving and the P&F chart is already bullish with a $111 target. We want to catch a breakout over $83.00. Our suggested trigger to buy calls is at $83.05. If triggered our target is the April-May 2006 highs in the $89.00-90.00 range.

Picked on November xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/26/06 (confirmed)
Average Daily Volume = 173 thousand

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Heinz - HNZ - close: 43.20 change: +0.89 stop: 41.85

Company Description:
H. J. Heinz Company, offering "Good Food Every Day"(TM) is one of the world's leading marketers and producers of branded foods in ketchup, condiments, sauces, meals, soups, snacks and infant foods. Heinz satisfies hungry consumers in every outlet, from supermarkets, to restaurants to convenience stores and kiosks. (source: company press release or website)

Why We Like It:
The bullish technical breakout in HNZ today looks like an entry point to go long the stock. The move appears to have been fueled by a company press release. HNZ is putting an initiative on the ballot for shareholders to change the voting procedure to elect directors. The company is also considering a shareholder rights plan. Plus, the management said that the company was on track to grow earnings ten percent this year. The rally today (+2.1%) is a significant breakout from the stock's six-month consolidation pattern. We are suggesting long positions here but a pull back toward what should be support near $42.50 could also be used as an entry point. Our target is the $46.50-47.00 range. We don't have a lot of time. HNZ is due to report earnings around November 21st and we plan to exit ahead of the report.

Picked on November 08 at $43.20
Change since picked: + 0.00
Earnings Date 11/21/06 (unconfirmed)
Average Daily Volume: 1.6 million

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Oil States - OIS - close: 30.21 change: +0.99 stop: 28.84

Company Description:
Oil States International, Inc. is a diversified oilfield services company. With locations around the world, Oil States is a leading manufacturer of products for deepwater production facilities and subsea pipelines, and a leading supplier of a broad range of services to the oil and gas industry, including production-related rental tools, work force accommodations and logistics, oil country tubular goods distribution and land drilling services. (source: company press release or website)

Why We Like It:
The oil sector continues to look strong so we want to add another bullish candidate in the group. OIS has a steady pattern of higher lows and today's rebound from its rising 21-dma also produced a bullish engulfing candlestick pattern and a breakout over $30.00 and its 100-dma. Volume came in very strong on the move. Our target is the $32.50-33.00 range.

Picked on November 08 at $30.21
Change since picked: + 0.00
Earnings Date 10/30/06 (confirmed)
Average Daily Volume: 980 thousand

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Pacific Ethanol - PEIX - close: 17.51 chg: +1.29 stop: 15.79

Company Description:

(source: company press release or website)

Why We Like It:
Several stocks related to alternative fuels surged on Wednesday after democrats won control of the house during Tuesday's election. Shares of PEIX rallied almost 8% on very strong volume. Normally we would not want to chase such a big move but we suspect there is more to come. The stock's rally is also a technical breakout from its three-week consolidation. There is no doubt that this is probably a riskier, more aggressive play. PEIX has been volatile in the past and we have a relatively short time frame. The company is expected to report earnings sometime between November 14th and the 26th. Unfortunately, we don't have a confirmed date yet. We do not want to hold over the report when we do find out the correct date. Traders can choose to chase the stock right here near $17.50 or hope for a pull back. The $16.50 level might be a good spot to try and buy the dip. Shares do have potential resistance with the 100-dma overhead. Our target is the $19.90-20.00 range. We're sticking our stop loss under today's low.

Picked on November 08 at $17.51
Change since picked: + 0.00
Earnings Date 11/14/06 (unconfirmed)
Average Daily Volume: 1.6 million
 

New Short Plays

None today.
 

In Play Updates and Reviews

Long Play Updates

ENSCO - ESV - close: 53.06 change: +2.13 stop: 48.75 *new*

Oil stocks turned in decent gains on Wednesday. The OIX oil index rose 1.26% and the OSX oil services index rose 2.18% thanks to a bounce in crude oil futures. Shares of ESV out performed its peers with a 4.18% gain on above average volume. The stock is making a lot of progress towards our target in the $54.50-55.00 range. We're raising the stop loss to $48.75.

Picked on November 05 at $50.23
Change since picked: + 2.83
Earnings Date 10/24/06 (confirmed)
Average Daily Volume: 3.1 million

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Hess Corp. - HES - close: 44.48 chg: +0.66 stop: 39.99

HES turned in some good news today. Traders bought the dip near $43.50 and there was no follow through lower on yesterday's bearish engulfing candlestick (bearish reversal) pattern. We remain bullish and would continue to open new plays here. More conservative traders may want to adjust their stop toward the $42 level, which is where we would expect the stock to find support. Our target is the $48.00-50.00 range over the next several weeks.

Picked on November 05 at $43.85
Change since picked: + 0.73
Earnings Date 10/25/06 (confirmed)
Average Daily Volume: 3.7 million
 

Short Play Updates

INVACARE - IVC - close: 21.71 change: -0.31 stop: 23.11

IVC lost 1.4% today following yesterday's failed rally under $22.50. Traders may want to consider new short positions here. Our target is the $20.05-20.00 range. More aggressive traders may want to aim lower.

Picked on October 30 at $21.94
Change since picked: - 0.23
Earnings Date 10/26/06 (confirmed)
Average Daily Volume: 209 thousand

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Joy Global - JOYG - close: 40.09 chg: +0.67 stop: 40.65

Coal stocks are still looking weak and poised to move lower but shares of JOYG continue to bounce nonetheless. Today's rally is a minor bullish engulfing candlestick pattern and a breakout over round-number resistance at the $40.00 level. This is a pivotal point for JOYG. More conservative traders may want to tighten their stops a bit or just exit early to limit losses.

Picked on November 01 at $37.35
Change since picked: + 2.74
Earnings Date 12/14/06 (unconfirmed)
Average Daily Volume: 3.1 million

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Rambus Inc. - RMBS - close: 16.33 change: -0.18 stop: 17.25

There is no change from our previous updates. We are still waiting for a breakdown under support at $16.00 before suggesting new positions but more aggressive traders may want to consider new plays here. Our trigger to open positions is at $15.90. If triggered our target is the $12.50 level. More aggressive traders may want to aim for the August lows closer to $10.00. Be advised that RMBS is very active in various legal battles over patents and intellectual property and bears (and bulls) are constantly at risk for an unexpected headline sending the stock surging one way or the other. More conservative traders may want to avoid this play. FYI: The latest (October) data put short interest at 6.4% of the 85.3 million-share float.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/19/06 (confirmed)
Average Daily Volume: 9.7 million

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Toll Brothers - TOL - close: 27.50 chg: -0.54 stop: 30.05

Homebuilders as a group continued to show relative weakness. The DJUSHB index lost 1.5%. Shares of TOL under performed its peers losing 1.9% thanks to an analyst downgrade today. Our target is the $25.25-25.00 range. We do not want to hold over the early December earnings report. FYI: The P&F chart is still bullish for TOL and shares can trade to $25 and not break the current buy signal. Traders should also note that the latest (October) data put short interest at 15% of TOL's 114.9 million-share float. That's a high amount of short interest and increases the chance of a short squeeze should TOL suddenly move higher.

Picked on November 07 at $27.60
Change since picked: - 0.10
Earnings Date 12/07/06 (unconfirmed)
Average Daily Volume: 3.5 million

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Texas Instruments - TXN - close: 29.35 change: -0.39 stop: 31.15

TXN under performed the markets and its peers in the semiconductor sector with today's 1.3% decline on above average volume. Our target is the $27.50 mark.

Picked on October 27 at $29.90
Change since picked: - 0.55
Earnings Date 10/23/06 (confirmed)
Average Daily Volume: 14.8 million
 

Closed Long Plays

Basic Energy - BAS - close: 26.84 change: +1.00 stop: 24.99

Our short-term bullish play in BAS didn't turn out that bad. A rally in oil stocks thanks to a rebound in crude oil today helped push BAS to a 3.8% gain. It was our plan to exit today at the closing bell to avoid holding over the company's earnings report expected tomorrow.

Picked on November 05 at $25.30
Change since picked: + 1.54
Earnings Date 11/09/06 (confirmed)
Average Daily Volume: 287 thousand
 

Closed Short Plays

Monster Worldwide - MNST - close: 42.51 chg: +1.41 stop: 41.65

We have been stopped out at $41.65. The after hours weakness we saw last night never materialized. Shares of MNST produced an impressive rally rising more than 3.4% on above average volume.

Picked on November 01 at $39.60
Change since picked: + 2.91
Earnings Date 10/25/06 (confirmed)
Average Daily Volume: 1.5 million
 

Premier Investor New Play Archives