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New Plays
Long Plays
Short Plays
GTW A
JPM MOT

New Long Plays

Gateway Inc. - GTW - cls: 1.42 change: -0.08 stop: 1.19

Company Description:
Since its founding in 1985, Irvine, Calif.-based Gateway has been a technology pioneer, offering award-winning PCs and related products to consumers, businesses, government agencies and schools. Gateway is the third largest PC company in the U.S. and among the top ten worldwide. (source: company press release or website)

Why We Like It:
Shares of GTW have been struggling for years. The stock is currently in free-fall toward its all-time low at $1.30 from July 2006. We suspect that investors will defend it at $1.30 again. This is a very speculative, higher-risk play and we're planning to hold over the August 2nd earnings report. At this time we expect the markets to be weak on Monday morning. GTW looks poised to fall again too. We're suggesting a trigger to buy GTW in the $1.35-1.30 zone. We'll use a stop at $1.19 but more conservative traders could put their stop closer to $1.25 or $1.30. If triggered in the $1.35-1.30 zone our target is the $1.55-1.60 range.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/02/07 (confirmed)
Average Daily Volume: 3.6 million

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JP Morgan - JPM - cls: 44.23 change: +0.15 stop: 42.45

Company Description:
Chase originates $170 billion in residential mortgages and home equity annually, and services a portfolio of more than $500 billion. Parent company JPMorgan Chase & Co. is a leading global financial services firm with assets of $1.5 trillion and operations in more than 50 countries. (source: company press release or website)

Why We Like It:
JPM has fallen sharply over the last couple of weeks and it looks oversold. However, we're expecting more market weakness on Monday morning. Therefore we're suggesting that readers use a dip in JPM as an entry point. Our suggested entry zone is the $43.70-43.50 range. If triggered our target is the $47.00-47.50 range. We're placing our stop at $42.45 but more conservative traders could definitely try using a tighter stop loss closer to $43.00 or $43.50.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/18/07 (unconfirmed)
Average Daily Volume: 17.8 million
 

New Short Plays

Agilent Tech - A - cls: 37.64 change: -0.80 stop: 39.05

Company Description:
Agilent Technologies Inc. is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. Agilent had net revenue of $5.0 billion in fiscal year 2006. (source: company press release or website)

Why We Like It:
Agilent's bull run from March to July 2007 appears to be over. The stock produced a small bearish double-top pattern over the last few weeks. Now shares are breaking support on big volume. We're suggesting shorts here with a target in the $35.50-35.00 zone. The rising 200-dma near $35.00 could be technical support.

Picked on July 29 at $37.64
Change since picked: + 0.00
Earnings Date 08/14/07 (unconfirmed)
Average Daily Volume: 2.2 million

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Motorola - MOT - cls: 16.95 change: -0.40 stop: 18.11

Company Description:
Motorola is known around the world for innovation and leadership in wireless and broadband communications. A Fortune 100 company with global presence and impact, Motorola had sales of US $42.8 billion in 2006. (source: company press release or website)

Why We Like It:
MOT has spent the last several months consolidating sideways but the recent market weakness has produced a serious breakdown. We are suggesting shorts with a target in the $15.10-14.50 range. If the stock can bounce shares should find overhead resistance in the $17.50-18.00 region. More aggressive traders may want to aim lower since the P&F chart points to a $9.00 target.

Picked on July 29 at $16.95
Change since picked: + 0.00
Earnings Date 10/17/07 (unconfirmed)
Average Daily Volume: 25.7 million
 

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