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New Plays
Long Plays
Short Plays
BOBJ HZO
COLM  
GMRK  
GNA  

New Long Plays

Business Objects - BOBJ - cls: 39.79 chg: +0.76 stop: 38.45

Company Description:
Business Objects has been a pioneer in business intelligence (BI) since the dawn of the category. Today, as the world's leading BI software company, Business Objects transforms the way the world works through intelligent information. The company helps illuminate understanding and decision-making at more than 43,000 organizations around the globe. (source: company press release or website)

Why We Like It:
Software stocks displayed some strength on Friday with the GSO index rising 1.5%. BOBJ managed to out perform its peers and rally 1.9% toward round-number resistance near $40.00. Rumors are circulating again that BOBJ is a takeover candidate and this could keep a bid under the share price. Aggressive traders may want to buy the stock now. We are suggesting a trigger to buy it at $40.15. A preferable entry point would be on a dip or bounce near $39.00. If we see such a dip we might alter our plans but right now we'll wait for a breakout. We'll use a relatively tight stop loss at $38.45. Our target is the $44.00-45.00 range.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume: 1.5 million

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Columbia Sportswear - COLM - cls: 65.64 chg: +0.71 stop: 63.39

Company Description:
Columbia Sportswear Company was founded in 1938 in Portland, Oregon and is a global leader in the design, sourcing, marketing and distribution of active outdoor apparel and footwear. (source: company press release or website)

Why We Like It:
COLM has a steady bullish trend of higher lows and the recent rebound has the stock poised to breakout from its consolidation pattern. Technical indicators are turning bullish and the Point & Figure chart is already bullish with an $89 target. We are suggesting a trigger to buy the stock at $66.25. If triggered our target is the $69.85-70.00 range. More aggressive traders may want to aim higher given the trend (see chart).

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume: 235 thousand

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GulfMark - GMRK - cls: 51.75 chg: +0.80 stop: 49.49

Company Description:
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of sixty-one (61) offshore support vessels, primarily in the North Sea, offshore Southeast Asia, and the Americas. (source: company press release or website)

Why We Like It:
There is no doubt about it - GMRK is looking overbought but we're not seeing any real slow down in its momentum. Traders are buying the dip near the bottom edge of its bullish channel. With the OSX oil services index breaking out to new highs GMRK might play catch up to its peers. The P&F chart already points to a $73 target. We are suggesting long positions now. More conservative traders may want to wait for a rise past $52.00. We'll use a relatively tight stop loss to limit our risk. We have two targets. Our conservative target is the $54.75-55.00 range. Our aggressive target is the $57.00-60.00 range.

Picked on May 20 at $51.75
Change since picked: + 0.00
Earnings Date 07/30/07 (unconfirmed)
Average Daily Volume: 241 thousand

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Gerdau Ameristeel - GNA - cls: 15.23 chg: +0.70 stop: 14.35

Company Description:
Gerdau Ameristeel is the second largest mini-mill steel producers in North America with annual manufacturing capacity of more than 9 million tons of mill finished steel products. Through its vertically integrated network of 17 mini- mills, 17 scrap recycling facilities and 51 downstream operations, Gerdau Ameristeel serves customers throughout the United States and Canada. (source: company press release or website)

Why We Like It:
This is an aggressive and speculative bullish play on the steel stocks. We are constantly hearing that the steel industry is going to see more consolidation with the bigger players buying up the smaller guys. That M&A fever is probably what drove GNA from the $12 range to $15. Now traders are buying the dip and volume was big on Friday. We will try and limit our risk with a stop loss under Thursday's low, which could be too tight. Our target is the $17.50-18.00 range. The P&F chart points to a $29 target.

Picked on May 20 at $15.23
Change since picked: + 0.00
Earnings Date 07/30/07 (unconfirmed)
Average Daily Volume: 552 thousand
 

New Short Plays

MarineMax - HZO - cls: 20.42 chg: +0.06 stop: 21.51

Company Description:
Headquartered in Clearwater, Florida, MarineMax is the nation's largest recreational boat and yacht retailer. Focused on premium brands, such as Sea Ray, Boston Whaler, Meridian, Cabo, Hatteras, Grady White, Ferretti Yachts, Pershing, Riva, Mochi Craft, Apreamare and Bertram the Company sells new and used recreational boats and related marine products and provides yacht brokerage services. (source: company press release or website)

Why We Like It:
HZO has been under performing the market for months. The stock has a bearish trend of lower highs. The most recent oversold bounce has stalled under its 50-dma. Now the MACD is turning bearish again. The P&F chart is already bearish with a $2.00 price target. We are suggesting a trigger to short HZO at $19.95, which is under round-number support at $20.00. Our target is the $17.75-17.50 range. It is VERY important that traders realize HZO has a high amount of short interest. The latest data put short interest at $28% of the 16.8 million-share float. That's a lot of short interest and a small float. Unfortunately, that can be a recipe for a big short squeeze and our stops may not help in what your broker will call a "fast market". More conservative traders may want to pass on this one.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume: 354 thousand
 

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