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New Plays
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ACI None
CTV  
RTN  
TJX  
TOL  

New Long Plays

Arch Coal - ACI - close: 29.08 change: +1.66 stop: 27.39

Company Description:
St. Louis-based Arch Coal is the nation's second largest coal producer. The company's core business is providing U.S. power generators with clean- burning, low-sulfur coal for electric generation. Through its national network of mines, Arch supplies the fuel for approximately 6 percent of the electricity generated in the United States. (source: company press release or website)

Why We Like It:
Coal stocks have been beaten up since the first of the year. Yet it looks like the selling has run out of steam and shares of ACI may have produced a bottom over the last week. Shares of ACI built a base with several days in the $27.00-28.50 range. Now the stock is breaking out on above average volume from its trading range and it has a bullish technical picture to boot. The catalyst for the move appears to be the new cold front hitting much of the country. We are suggesting long positions with ACI above $28.50. Our target is the $32.50 level. We do not want to hold over the early February earnings report so we only have a couple of weeks. FYI: The P&F chart is still bearish from the January sell-off.

Picked on January 21 at $29.08
Change since picked: + 0.00
Earnings Date 02/02/07 (confirmed)
Average Daily Volume: 3.1 thousand

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Commscope - CTV - close: 31.62 change: +0.71 stop: 29.99

Company Description:
CommScope is a world leader in the design and manufacture of "last mile" cable and connectivity solutions for communication networks. Through its SYSTIMAX Solutions(TM) and Uniprise Solutions brands CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. (source: company press release or website)

Why We Like It:
We are adding CTV as bullish candidate just as shares look poised to breakout over resistance at the $32.00 level. Most of the technical indicators on the weekly and daily charts suggest the consolidation is almost over. We are suggesting a trigger to go long the stock at $32.05. If triggered our stop loss will be $29.99 and our target is the $34.85-36.00 range. We do not want to hold over the late February earnings report. FYI: The P&F chart is bearish. Plus, more conservative traders may want to put their stop at $30.49 under the most recent low.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/22/07 (unconfirmed)
Average Daily Volume: thousand

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Granite Constr. - GVA - close: 52.41 change: +1.20 stop: 50.79

Company Description:
Granite is one of the nation's largest diversified heavy civil contractors and construction materials producers. Granite Construction serves public and private sector clients through its offices nationwide. (source: company press release or website)

Why We Like It:
A stronger read on the economy has produced another rebound in GVA. Shares were already on the road to recovery after strong bounce from December's lows. Traders bought the dip on Friday near $51.00 and its simple 50-dma. We're going to suggest long positions with the stock above $51.50. More conservative traders may want to wait for a rise past $53.00 or its 100-dma near $53.15. We'll use a tight stop at $50.79, which is under Friday's low and the 50-dma. Our target is the $57.50 mark. We do not want to hold over the mid February earnings report. FYI: Volume was a bit light on Friday's rally, which tends to undermine the strength of any signal.

Picked on January 21 at $52.41
Change since picked: + 0.00
Earnings Date 02/12/07 (unconfirmed)
Average Daily Volume: 509 thousand

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Raytheon - RTN - close: 52.30 change: +0.74 stop: 50.95

Company Description:
Raytheon Company, with 2005 sales of $21.9 billion, is an industry leader in defense and government electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Waltham, Mass., Raytheon employs 80,000 people worldwide. (source: company press release or website)

Why We Like It:
The strategy with RTN is pretty simple. The trend is up and the stock has been trading inside a bullish, rising channel since the June 2006 lows. Shares have been consolidating the last two weeks along the bottom edge of its rising channel and we're just now seeing signs of a rebound. We're suggesting readers buy this bounce from support with a relatively tight stop loss. Our target is the $55.00-56.00 range. The old highs near $54 might offer some resistance. Our stop is at $50.95. More aggressive traders may want to put their stop under the $50.00 mark. We do not want to hold over the February 1st earnings report so we have less than two whole weeks.

Picked on January 21 at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/01/07 (confirmed)
Average Daily Volume: 1.6 million

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TJX Cos. - TJX - close: 30.03 change: +0.53 stop: 28.95

Company Description:
The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The Company operates 826 T.J. Maxx, 751 Marshalls, 271 HomeGoods, and 162 A.J. Wright stores, as well as 36 Bob's Stores, in the United States. In Canada, the Company operates 184 Winners and 68 HomeSense stores, and in Europe, 212 T.K. Maxx stores. (source: company press release or website)

Why We Like It:
The sharp decline in the price of oil has re-energized the retail stocks. Investors believe that if consumers are paying less for gas they'll spend more on other items. This has pushed the RLX retail index to a new all-time high. Shares of TJX have followed suit and are also trading near all-time highs. Aggressive traders may want to open positions now with Friday's relative strength. We want to see just a little more confirmation so we're suggesting a trigger to buy the stock at $30.21. If triggered our target is the $32.50-33.00 range. We do not want to hold over the mid February earnings report.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/13/07 (unconfirmed)
Average Daily Volume: 3.2 million

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Toll Bros. - TOL - close: 32.42 change: +0.75 stop: 30.89

Company Description:
Toll Brothers, Inc. is the nation's leading builder of luxury homes. The Company began business in 1967 and became a public company in 1986. The Company serves move-up, empty-nester, active-adult and second-home home buyers and operates in 21 states. (source: company press release or website)

Why We Like It:
The homebuilders turned in a decent week fueled by renewed conviction that the worst is behind for the real estate slow down. Positive economic news showing a growing economy didn't hurt either. We like TOL as a bullish candidate because the stock has broken out from resistance and through the top of what appears to be a big bull flag pattern. Technicals are improving and the MACD is nearing a new buy signal on the daily chart. We are suggesting long positions with TOL above $32.00. Our target is the $34.75-35.00 range. More aggressive traders may want to use a wider stop loss. FYI: Be aware that rival homebuilder DHI is expected to report earnings on January 23rd and their results and guidance could have a big impact on the sector.

Picked on January 21 at $32.42
Change since picked: + 0.00
Earnings Date 03/06/07 (unconfirmed)
Average Daily Volume: 3.3 million
 

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