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New Plays
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CFC None
KLAC  
NWPX  

New Long Plays

Countrywide Fincl. - CFC - cls: 36.83 chg: +0.45 stop: 33.95

Company Description:
Countrywide is a diversified financial services company with mortgage banking at its core. As Americas leading home loan lender, Countrywide was built on the philosophy that those desiring the American dream deserve the opportunity to own a home. (source: company press release or website)

Why We Like It:
The sell-off in the mortgage lenders has been pretty dramatic. Yet it's starting to look like all the damage has been done. On Thursday CFC announced that their foreclosure rate on sub-prime loans for 2006 might surpass the 9.89% default rate in 2000. The stock dipped on Thursday but traders bought the dip near $36.00. Last week's bounce in CFC has broken the stock's short-term trend of lower highs and the technical indicators are turning higher. We're suggesting long positions in CFC with the stock above $36.00. More conservative traders may want to use a tighter stop loss. We're listing a conservative target in the $39.85-40.00 range. More aggressive traders may want to aim higher. FYI: We do not want to hold over the late April earnings report.

Picked on March 25 at $36.83
Change since picked: + 0.00
Earnings Date 04/24/07 (unconfirmed)
Average Daily Volume: 9.5 million

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KLA-Tencor - KLAC - cls: 54.34 chg: +0.73 stop: 52.75

Company Description:
KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, California, the Company has sales and service offices around the world. (source: company press release or website)

Why We Like It:
KLAC has been a relative strength leader inside the semiconductor sector. If the markets continue to rally and if stocks see any window dressing then KLAC could be an attractive target. The stock is up for the quarter and is nearing significant resistance at the $55.00 level. We're suggesting a trigger to buy the stock on a breakout at $55.15. If triggered our target is the $59.50-60.00 range. Before opening positions consider our time frame. We do not want to hold over the mid-April earnings report. That gives us about three weeks, which may be a little optimistic. FYI: The P&F chart is bullish with a $69 target. Nimble traders may also want to consider an alternative entry on a dip or bounce near $53.00.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/16/07 (unconfirmed)
Average Daily Volume: 4.9 million

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Northwest Pipe Co. - NWPX - cls: 36.85 chg: +0.53 stop: 33.99

Company Description:
Northwest Pipe Company manufactures welded steel pipe in three business segments. Its Water Transmission Group is a leading supplier of large diameter, high-pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. Its Fabricated Products Group manufactures propane tanks and other fabricated products. The Company is headquartered in Portland, Oregon and has nine manufacturing facilities across the United States and Mexico. (source: company press release or website)

Why We Like It:
NWPX is a higher-risk, more aggressive play. We label it higher risk because the stock's average volume is pretty low, which might leave it open to being more volatile (or manipulated). It's also more aggressive because we're using a wide stop loss to give NWPX room to move. We're putting our stop at $33.99. More conservative traders may want to put their stop closer to $35.00. We like NWPX for its long-term up trend. Plus, shares are bouncing from a recent test of technical support near its 100-dma. Technical indicators, like the MACD, are pointing higher. Shares recently rallied on big volume after the company announced earnings and bested estimates on EPS and revenues. Our short-term target is the $39.85-40.00 range. More aggressive traders may want to aim higher. The P&F chart points to a $53 target.

Picked on March 25 at $36.85
Change since picked: + 0.00
Earnings Date 03/22/07 (confirmed)
Average Daily Volume: 57 thousand
 

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