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New Plays
Long Plays
Short Plays
FSTR AKAM

New Long Plays

L.B.Foster Co. - FSTR - cls: 37.33 change: +0.90 stop: 33.90

Company Description:
L.B. Foster Company is a leading manufacturer, fabricator, and distributor of products for the rail, construction and utility and energy markets with approximately 30 locations throughout the United States. (source: company press release or website)

Why We Like It:
This is an aggressive, higher-risk play. With the market falling we normally would avoid any sort of bullish play like this. However, FSTR is showing great relative strength. The stock has been ignoring the recent market weakness. Furthermore shares are hitting new highs on above average volume. We are suggesting new bullish positions now although traders could look for a dip back toward $35.00 and its 10-dma or wait for a new high over $38.00 before initiating positions. Due to the market's volatility and FSTR's own volatility we are using a wide (aggressive) stop loss. We have two targets. Our first target is the $39.90-40.00 range. Our second target is the $42.00-42.50 zone. FYI: More conservative traders may want to put their stop loss closer to $35.00.

Picked on August 14 at $37.33
Change since picked: + 0.00
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume: 150 thousand
 

New Short Plays

Akamai - AKAM - close: 32.35 change: -1.48 stop: 35.05

Company Description:
Akamai is the leading global service provider for accelerating content and applications online. Thousands of organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. (source: company press release or website)

Why We Like It:
AKAM looks like it's breaking down from its recent trading range. The oversold bounce has stalled out at least three times and today's drop looks like a new entry point for shorts. We're suggesting new shorts now although more conservative traders may want to wait for a new relative under the August 1st low of $31.81. We'll put our stop loss at $35.05. The P&F chart is very bearish and points to a $13 target. We see potential support near $30.00 but AKAM doesn't have real support until the $27.50 region. We're aiming for the $28.00-27.50 zone. FYI: Traders should be aware that the latest (July) data put short interest at 6.5% of the 159 million-share float. That's a relatively high amount of short interest and increases the risk of a short squeeze.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume: thousand
 

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