Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
None BRCM
  CAL
  CIT
  IACI
  MNST

New Long Plays

None today.
 

New Short Plays

Broadcom - BRCM - cls: 30.10 change: -0.64 stop: 31.65

Company Description:
Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications Broadcom is one of the world's largest fabless semiconductor companies, with 2006 revenue of $3.67 billion, and holds over 2,000 U.S. and 800 foreign patents, more than 6,000 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video and data. (source: company press release or website) .

Why We Like It:
BRCM currently has the upper hand in its battle with QCOM but you wouldn't know it by looking at the stock price. Shares of BRCM broke down under significant support in mid May. Since then the stock has consolidated sideways long support near $30.00. Now BRCM is poised to breakdown into a new leg lower. We want to see a new low under the late May lows. Therefore we're suggesting a trigger to short BRCM at $29.75. If triggered our target is the $27.00-26.00 range. We do not want to hold over the mid July earnings report. FYI: One of the larger risks with shorting BRCM will be any sort of headline-making news events in the legal battle between BRCM and QCOM.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/07 (unconfirmed)
Average Daily Volume: 11.1 million

---

Continental Airlines - CAL - cls: 34.10 chg: -1.59 stop: 36.26

Company Description:
Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,100 daily departures throughout the Americas, Europe and Asia, serving 144 domestic and 138 international destinations. (source: company press release or website)

Why We Like It:
Airline stocks are plunging toward their lows for the year. Shares of CAL contributed to the sector weakness with a 4.4% sell-off and a breakdown below support. Investors decided to take a negative view of the company's latest bookings update. The technical breakdown under $35.00 looks pretty ugly. We are suggesting shorts here although CAL is arguably oversold. A bounce back toward the $35.50-35.75 zone might be a new entry point if CAL tries to "fill the gap". Our target is the $30.50-30.00 range. We do not want to hold over the mid July earnings report.

Picked on June 12 at $34.10
Change since picked: + 0.00
Earnings Date 07/19/07 (unconfirmed)
Average Daily Volume: 4.3 million

---

CIT Group - CIT - cls: 58.17 chg: -1.01 stop: 60.05

Company Description:
CIT Group Inc., a leading commercial and consumer finance company, provides clients with financing and leasing products and advisory services. Founded in 1908, CIT has approximately $80 billion in managed assets and possesses the financial resources, industry expertise and product knowledge to serve the needs of clients across approximately 30 industries worldwide. (source: company press release or website)

Why We Like It:
Until today CIT had been on the newsletter as a bullish candidate. Yet the stock never broke out over resistance to hit our trigger to go long. We're switching directions following today's weakness and technical breakdown under its 50-dma. We're suggesting shorts with CIT under $59.00. Our target is the $55.25-55.00 range. We'll suggest a stop loss at $60.05 but more conservative traders might want to use $59.65.

Picked on June 12 at $58.17
Change since picked: + 0.00
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume: 1.3 million

---

IAC/InterActive - IACI - cls: 32.96 chg: -0.97 stop: 34.35

Company Description:
IAC is an interactive conglomerate operating more than 60 diversified brands in sectors being transformed by the internet, online and offline... our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. (source: company press release or website)

Why We Like It:
IACI has broken down from its recent trading range and now the bounce has failed. The three-day candlestick pattern is a bearish reversal. We're suggesting shorts with IACI under $34.00. We do see potential support in the $31.50 zone but it's hard to pinpoint. Our target is the $30.35-30.00 range.

Picked on June 12 at $32.96
Change since picked: + 0.00
Earnings Date 08/02/07 (unconfirmed)
Average Daily Volume: 2.6 thousand

---

Monster Worldwide - MNST - cls: 44.41 chg: -0.86 stop: 46.26

Company Description:
Monster Worldwide, Inc., parent company of Monster, the premier global online employment solution for more than a decade, strives to bring people together to advance their lives. (source: company press release or website)

Why We Like It:
MNST recently broke down under round-number support near $45.00 and broke down under technical support at its simple 200-dma. The oversold bounce failed at its 50-dma directly overhead and now shares look poised to fall again. We're suggesting shorts now with MNST under $45.00. More conservative traders may want to wait for a decline under $44.00 before initiating positions. Our target is the $40.50-40.00 range but it's important to note that we'll exit ahead of the late July earnings report.

Picked on June 12 at $44.41
Change since picked: + 0.00
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume: 4.2 million
 

Premier Investor New Play Archives