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New Long Plays

Bright Horizons - BFAM - cls: 37.53 chg: +1.13 stop: 35.99

Company Description:
Bright Horizons Family Solutions is the world's leading provider of employer-sponsored childcare, early education and strategic work/life consulting. The Company operates more than 600 early care and family centers and has the capacity to serve more than 69,000 children and families in the United States, the United Kingdom, Ireland, Canada and Puerto Rico. (source: company press release or website)

Why We Like It:
Now that the market is in rally mode again it looks like the bounce in BFAM might have a chance. Shares have been sliding lower for the last four weeks after spiking higher in mid February on strong earnings news. The sell-off began to stall once BFAM reached support near the $36 level. Today's bounce was fueled by strong volume and shares broke through short-term technical resistance at the 10-dma. We're suggesting long positions now with a target in the $39.85-40.00 range. In spite of the pull back the P&F chart never turned negative and still points to a $69 target.

Picked on March 21 at $37.53
Change since picked: + 0.00
Earnings Date 05/17/07 (unconfirmed)
Average Daily Volume: 185 thousand

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EMC Corp. - EMC - cls: 13.26 chg: +0.24 stop: 12.74

Company Description:
EMC Corporation is the world's leading developer and provider of information infrastructure technology and solutions that enable organizations of all sizes to transform the way they compete and create value from their information. (source: company press release or website)

Why We Like It:
Tech stocks were a big part of today's rally with most of the major tech-related sector indices up more than two percent. Shares of EMC rose 1.8% and on improving volume. The current bounce in EMC looks like a tempting entry point to buy the stock because shares are rebounding from a 38.2% Fibonacci retracement of its big 2006-2007 rally. We're suggesting that readers buy the bounce now and put a stop under the recent low. There is potential resistance at the 100-dma and 50-dma but any sustained market rally should help EMC break through it. Our target is the $14.50-15.00 range. FYI: The P&F chart is still bearish from the February-March sell-off.

Picked on March 21 at $13.26
Change since picked: + 0.00
Earnings Date 04/17/07 (unconfirmed)
Average Daily Volume: 29.1 million

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Titanium Metals - TIE -cls: 36.30 chg: +0.92 stop: 34.49

Company Description:
TIMET, headquartered in Dallas, Texas, is a leading worldwide producer of titanium metal products. (source: company press release or website)

Why We Like It:
TIE got a boost yesterday after an analyst firm started coverage on the stock to a "buy". Today's market rally helped shares breakout over short-term resistance at the $36.00 level. There is still potential resistance near $36.70 at the top of its late February gap down. However, if the market's continue to rally then we expect that TIE will be able to challenge its old highs. Actually we suspect that TIE will hit new relative highs. Our target is the $39.85-40.00 range. The P&F chart points to a $54 target.

Picked on March 21 at $36.30
Change since picked: + 0.00
Earnings Date 05/15/07 (unconfirmed)
Average Daily Volume: 2.4 million
 

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