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New Plays
Long Plays
Short Plays
APH FLML
MGRC  
MU  

Play Editor's Note: We are extremely leery of the market at this point. Yes, the trend is still up. However, the Wednesday-Thursday sell-off last week did a lot of technical damage. We are reluctantly bullish. Most of the candidates we found this weekend were for bullish positions. Yet we strongly suggest that readers hesitate to open new bullish plays and if you have bullish positions open you may want to double check your stop losses and keep your finger near the sell button.


New Long Plays

Amphenol - APH - cls: 35.74 change: +0.96 stop: 34.69

Company Description:
Amphenol Corporation is one of the world's leading producers of electronic and fiber optic connectors, cable and interconnect systems. Amphenol products are engineered and manufactured in the Americas, Europe and Asia and sold by a worldwide sales and marketing organization. Amphenol has a diversified presence as a leader in high growth segments of the interconnect market including: Military, Commercial Aerospace, Automotive, Broadband Communication, Industrial, Information Technology and Data Communications Equipment, Mobile Devices and Wireless Infrastructure. (source: company press release or website)

Why We Like It:
This is a relatively aggressive entry point for APH. The stock has very clear resistance in the $36.50 area. However, the diversified electronics sector is moving higher and shares of APH produced a bullish reversal on Friday. We are suggesting positions now. More conservative traders may want to wait for a new high over $36.50. We'll try and limit our risk with a stop loss under Friday's low. Our target is the $39.75-40.00 range.

Picked on June 10 at $35.74
Change since picked: + 0.00
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume: 1.0 million

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McGrath RentCorp. - MGRC - cls: 32.00 chg: +0.40 stop: 30.95

Company Description:
Founded in 1979, the Company, under the trade name Mobile Modular Management Corporation, rents and sells modular buildings to fulfill customers' temporary and permanent space needs in California, Texas and Florida. (source: company press release or website)

Why We Like It:
Shares of MGRC have been consolidating under resistance at the $32.25 level for months. The stock has rallied back toward resistance and showed relative strength during last week's market weakness. Volume has slowly been inching higher. We suspect the stock is poised for a breakout. We are suggesting a trigger to buy the stock at $32.31, which would be a new 52-week high. If triggered our target is the $36.00-37.50 range. The P&F chart is bullish with a $50.00 target. FYI: It's worth noting that MGRC only has a 23.4 million-share float and short interest is close to 7.5% of the float. A breakout to new highs could spark some short covering!

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/30/07 (unconfirmed)
Average Daily Volume: 92 thousand

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Micron Tech. - MU - cls: 12.35 change: +0.40 stop: 11.85

Company Description:
Micron Technology, Inc., is one of the world's leading providers of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge computing, consumer, networking, and mobile products. (source: company press release or website)

Why We Like It:
Big news from NSM fueled a strong rally for the semiconductor stocks. NSM reported better than expected earnings and a big stock buy back program. Analysts responded positively. The sector strength helped shares of Micron (MU) rally 3.3%. We already had our eye on MU because it looks like the stock has formed a bottom over the last three months. Friday's bounce is a new entry point for bullish positions. We'll try and limit our risk with a relatively tight stop under Friday's lows. There does appear to be resistance near $13.00 with the exponential 200-dma. However, we're aiming for the $13.40-13.50 range near its simple 200-dma. More aggressive traders may want to aim higher. We do not want to hold over the late June earnings report. FYI: The P&F chart is still bearish.

Picked on June 10 at $12.35
Change since picked: + 0.00
Earnings Date 06/27/07 (unconfirmed)
Average Daily Volume: 27.9 million
 

New Short Plays

Flamel Tech. - FLML - cls: 24.25 change: -1.05 stop: 26.05

Company Description:
Flamel Technologies, S.A. is a biopharmaceutical company principally engaged in the development of two unique polymer-based delivery technologies for medical applications. Micropump is a controlled release and taste-masking technology for the oral administration of small molecule drugs. Flamel's Medusa technology is designed to deliver controlled-release formulations of therapeutic proteins. (source: company press release or website)

Why We Like It:
Last week was very bearish for FLML. The stock broke down from a six-week consolidation pattern. It broke down under technical support at its 200-dma. Plus, on Friday it broke down under round-number support at the $25.00 level. Volume was above average on all the breakdowns. At this point FLML does look short-term oversold. However, given the stock's relative weakness on Friday during a market-wide rally we are suggesting new shorts. We would like to put the stop loss above the 10-dma near $26.75 but that seems too wide. Instead we'll put the stop at $26.05. We're suggesting shorts with FLML under $25.00 and our target is the $21.00-20.00 range. The P&F chart points to an $18 target but does show potential support near $23.00.

Picked on June 10 at $24.25
Change since picked: + 0.00
Earnings Date 08/06/07 (unconfirmed)
Average Daily Volume: 456 thousand
 

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