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Play Editor Notes: The NASDAQ Composite and the Russell 2000 both look very vulnerable to more profit taking and that would definitely weigh on the rest of the market. We would turn defensive on any bullish positions and more conservative traders may want to start ratcheting up their stops or plan some early exits.


Omega Healthcare - OHI - cls: 16.56 chg: -0.31 stop: 17.05

Company Description:
Omega is a real estate investment trust investing in and providing financing to the long-term care industry. At December 31, 2006, the Company owned or held mortgages on 239 SNFs and assisted living facilities with approximately 27,302 beds located in 27 states and operated by 32 third-party healthcare operating companies. (source: company press release or website)

Why We Like It:
We are going to try shorting another REIT. This time we are suggesting a healthcare-related REIT. This particular sector has been showing some relative weakness. Shares of OHI just broke down under technical support at its 200-dma. Now the stock looks poised to breakdown from its two-month trading range. We're suggesting a trigger to short it at $16.24. If triggered our target is the $14.50-14.00 range. FYI: The most recent (April) data puts short interest at 5% of the 65 million-share float.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/26/07 (confirmed)
Average Daily Volume: 343 thousand

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