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New Plays
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ARW None
CAE  
CHL  
CMCSK  

New Long Plays

Arrow Elec. - ARW - close: 34.75 chg: +0.56 stop: 33.74

Company Description:
Arrow Electronics, Inc. is a major global provider of products, services, and solutions to industrial and commercial users of electronic components and computer products. (source: company press release or website)

Why We Like It:
Investors responded strongly to news in early January that ARW was buying the server division from Agilysys. The stock rallied to new multi-month highs and then spent the next week consolidating sideways. It now appears that the consolidation is over and ARW is poised to move higher again. We're suggesting a stop loss underneath the bottom edge of the recent consolidation. More conservative traders may want to wait for a rise past $35.00 before buying the stock. However, bear in mind that our target is the $36.50 level near last May's highs. We do not want to hold over the February earnings report.

Picked on January 14 at $34.75
Change since picked: + 0.00
Earnings Date 02/21/07 (unconfirmed)
Average Daily Volume: 800 thousand

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Cascade - CAE - close: 55.54 chg: +1.12 stop: 52.45

Company Description:
Cascade Corporation, headquartered in Fairview, Oregon, is a leading international manufacturer of materials handling products used primarily on lift trucks. (source: company press release or website)

Why We Like It:
We are going to try again with CAE. A couple of weeks ago it looked like CAE was poised to breakout past resistance and hit new highs but it never made. Now shares have posted a strong rebound and once again look ready to breakout. Volume has improved on the recent rally and technical indicators are naturally looking better. Weekly indicators still say the stock is overbought and due for a correction but traders keep buying the dips. The Point & Figure chart is bullish and points to a $70 target. Plus, a rise past $56 would produce a new quadruple top breakout buy signal. We are suggesting a trigger to buy the stock at $55.76. More conservative traders may want to use a trigger over $56.00. Our short-term target is the $59.75-60.00 range.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 03/08/07 (unconfirmed)
Average Daily Volume: 71 thousand

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China Mobile - CHL - cls: 42.60 chg: +0.21 stop: 39.99

Company Description:
China Mobile Limited (formerly named China Mobile (Hong Kong) Limited) (the "Company", together with its subsidiaries, the "Group") was incorporated in Hong Kong on 3 September 1997. As the leading mobile services provider in Mainland China, the Group boasts the world's largest unified, contiguous all-digital mobile network and the world's largest mobile subscriber base. In 2005, the Company was once again selected as one of the "FT Global 500" by Financial Times, and "The World's 2000 Biggest Public Companies" by Forbes magazine. (source: company press release or website)

Why We Like It:
Chinese stocks trading in the U.S. followed the Chinese market lower in early January. We suspect that the profit taking is over and we're seeing signs of a rebound. CHL is already bouncing from its lows last week and is trading back above its 50-dma. We're suggesting long positions now. We'll put our stop loss under $40.00 but more conservative traders might want to put their stop under last week's low (40.86). Our target is the $46.50-47.00 range. More aggressive traders may want to aim for $50.

Picked on January 14 at $42.60
Change since picked: + 0.00
Earnings Date 03/07/07 (unconfirmed)
Average Daily Volume: 1.2 million

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Comcast Corp. - CMCSK - cls: 43.32 chg: +1.10 stop: 41.45

Company Description:
Comcast Corporation is the nation's leading provider of cable, entertainment and communications products and services. With 24.1 million cable customers, 11.0 million high-speed Internet customers, and 2.1 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable systems and in the delivery of programming content. (source: company press release or website)

Why We Like It:
Shares of CMCSK are breaking out to new highs after a four-week consolidation in a narrow range. The stock seems to be stair-stepping higher and this is the beginning of its next step up. Volume was very strong on Friday's bullish breakout. Our target is the 2000-2001 highs. We'll plan an exit in the $46.00-46.50 range. We do not want to hold over the early February earnings report.

Picked on January 14 at $43.32
Change since picked: + 0.00
Earnings Date 02/01/07 (unconfirmed)
Average Daily Volume: 4.9 million
 

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