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BAS None
COG  

New Long Plays

Basic Energy - BAS - cls: 25.39 chg: +1.12 stop: 23.19

Company Description:
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The company employs more than 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain States. (source: company press release or website)

Why We Like It:
We think there is more strength ahead of the oil and oil services stocks. That's why we're willing to chase BAS here in spite of its impressive gains this week. The stock broke out past resistance near $24.00 three days ago and volume has continued to rise with the rally. Today's session produced another breakout past the simple 200-dma on big volume. This week's bullish surge has broken the long-term trend of lower highs. We are suggesting long positions with BAS above $24.00 but we would be surprised if the stock dipped that low again any time soon. Our target is the $29.00-30.00 range. We do not want to hold over the early May earnings report.

Picked on April 12 at $25.39
Change since picked: + 0.00
Earnings Date 05/09/07 (unconfirmed)
Average Daily Volume: 160 thousand

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Cabot Oil - COG - close: 35.95 change: +0.53 stop: 33.45

Company Description:
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent natural gas producer with substantial interests in the Gulf Coast, including Texas and Louisiana; the West, including the Rocky Mountains and Mid-Continent; the East and Canada. (source: company press release or website)

Why We Like It:
COG is another energy play. Shares have displayed a lot of relative strength and the stock is trading near all-time highs. More aggressive traders might want to buy the stock now given this past week's rally over the $35.00 level. We see resistance at $36.00 thanks to the February 2007 highs. Therefore we're suggesting a trigger to buy the stock at $36.15. If triggered our target is the $39.75-40.00 range. We do not want to hold over the April 30th earnings report.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/30/07 (confirmed)
Average Daily Volume: 1.0 million
 

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