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ARW None
BAM  
JRCC  
UNT  

New Long Plays

Arrow Elctr. - ARW - cls: 39.63 chg: +0.69 stop: 37.74

Company Description:
Arrow Electronics is a global provider of products, services and solutions to industrial and commercial users of electronic components and computer products. Headquartered in Melville, N.Y., Arrow serves as a supply channel partner for more than 600 suppliers and 140,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of 260 locations in 55 countries and territories. (source: company press release or website)

Why We Like It:
Shares of ARW have a relatively consistent bullish trend and the stock just bounced from the bottom of that trend near support at its rising 50-dma. Short-term technical indicators are turning higher and ARW is near resistance at the $40.00 level. The P&F chart looks very bullish with a triple-top breakout buy signal and a $66 target. We are suggesting a trigger to buy the stock at $40.15. If triggered our target is the $43.75-45.00 range. We don't have much time and plan to exit ahead of the April 19th (unconfirmed) earnings report. FYI: More aggressive traders may want to use a wider stop loss under the 50-dma.

Annotated chart:

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/19/07 (unconfirmed)
Average Daily Volume: 896 thousand

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Brookfield Asset Mgmt - BAM - cls: 54.76 chg: +0.57 stop: 52.35

Company Description:
Brookfield Asset Management Inc., focused on property, power and infrastructure assets, has over $70 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM. (source: company press release or website)

Why We Like It:
BAM has a consistently bullish trend of higher lows. The stock has more recently been bouncing from rising, technical support at its 50-dma. The rally this past week produced a technical breakout over resistance near $54.00. Technical indicators like the MACD on the daily chart have turned bullish again. We're suggesting long positions with BAM above $54.00. Readers can choose to buy the stock now of look for a dip. Our target is the $58.75-59.00 range. We do not want to hold over the early May earnings.

Annotated chart:

Picked on April 08 at $54.76
Change since picked: + 0.00
Earnings Date 05/02/07 (confirmed)
Average Daily Volume: 675 thousand

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James River Coal - JRCC - cls: 8.15 chg: +0.12 stop: 7.45

Company Description:
James River Coal Company mines, processes and sells, steam- and industrial-grade coal primarily to electric utility companies. The Company's mining operations are managed through five operating subsidiaries located throughout eastern Kentucky and one subsidiary in southern Indiana. (source: company press release or website)

Why We Like It:
This weekend's market wrap discusses the latest news about a potential consolidation in the coal industry. Stocks across the sector turned higher on Thursday. We are speculating that JRCC could see some significant gains as investors try to take positions ahead of any news. Now the company was not singled out as a takeover target but there aren't a lot of players in the sector. Technically, JRCC is looking pretty good. Volume has been rising on the recent rally. Shares have broken out past resistance near $8.00 and its simple 100-dma. If shares can trade over $8.50 it will reverse the P&F chart into a new buy signal. We are suggesting long positions now although readers can probably look for an entry point anywhere in the $7.50-8.50 range. There is potential resistance near $9.00 but our target is the $9.90-10.00 range. We do not want to hold over the early May earnings report.

Annotated chart:

Picked on April 08 at $ 8.15
Change since picked: + 0.00
Earnings Date 05/01/07 (unconfirmed)
Average Daily Volume: 647 thousand

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UNIT Crp. - UNT - cls: 51.95 chg: +0.67 stop: 49.89

Company Description:
Unit Corporation is a Tulsa-based, publicly held energy company engaged through its subsidiaries in oil and gas exploration, production, contract drilling and mid-stream operations. (source: company press release or website)

Why We Like It:
We remain bullish on oil and the oil stocks. Crude oil pulled back toward technical support near its 200-dma after Iran released its British captives. This looks like a temporary dip in the commodity. The world is still facing a showdown between Iran and the West about its nuclear plans. Plus, we're nearing the summer driving season. Shares of UNT look attractive following the bullish breakout over $50.00 and its 200-dma. The stock has spent the last two weeks consolidating its March gains and looks rested and ready to run. However, it's worth noting that this might be an aggressive entry point. UNT does have short-term resistance at the top of its trading range near $52.00 and additional resistance on the daily chart and P&F chart near $53.00. More conservative traders may want to wait for a breakout over $52.25 or $53.00 before initiating positions. Our target is the $58.00-60.00 range. We do not want to hold over the late April earnings report.

Annotated chart:

Picked on April 08 at $51.95
Change since picked: + 0.00
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume: 407 thousand

 

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