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New Plays
Long Plays
Short Plays
CCJ None
EON  
GLBL  
INTC  
RDN  
SYNL  
XNPT  

New Long Plays

Cameco Corp. - CCJ - cls: 39.74 chg: +1.17 stop: 37.40

Company Description:
Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest uranium producer. The company's uranium products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today. (source: company press release or website)

Why We Like It:
We believe the sell-off in CCJ is overdone. They are the best play in the uranium market and the price and demand for uranium is only going to rise. The stock is bouncing from support near $35.00. Currently shares are testing resistance near $40.00. We are suggesting a trigger to buy the stock at $40.26. However, we would suggest that nimble traders be on the look out for an alternative entry point with a dip and bounce near $38.00 if one is provided. If we are triggered at $40.26 our target is the $44.50-45.00 range. There is potential resistance at the 200-dma and the 50-dma. The P&F chart is still bearish given the sharp summer sell-off.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/30/07 (unconfirmed)
Average Daily Volume: 3.6 million

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EON AG - EON - cls: 54.55 change: +0.86 stop: 51.99

Company Description:
E.ON is on track to becoming the worlds leading power and gas company. With annual sales of just under EUR68 billion and roughly 81,000 employees, we are already the worlds largest investor-owned energy service provider. (source: company press release or website)

Why We Like It:
EON has a strong, long-term bullish trend. More recently the stock has spent the last few weeks building a new base between $52 and $54. Friday's rally saw EON breakout through resistance near $54.00 and its 50-dma. This looks like a new entry point for long positions. We have two targets. Our first target is the $57.40-57.50 range near its July highs. Our second target is the $59.85-60.00 range.

Picked on August 26 at $54.55
Change since picked: + 0.00
Earnings Date 08/15/07 (confirmed)
Average Daily Volume: 406 thousand

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Global Ind. - GLBL - cls: 24.02 chg: +0.69 stop: 22.39

Company Description:
Global Industries provides offshore construction, engineering, project management and support services including pipeline construction, SURF installations, platform installation and removal and diving to the oil and gas industry around the world. (source: company press release or website)

Why We Like It:
We are labeling this an aggressive play. Crude oil futures are bouncing and this is giving a lift to the oil services sector. Yet crude could easily reverse and continue with its end-of-summer correction. What's tempting about GLBL is the bullish reversal. The stock bounced from support near $19.00 and its 200-dma, which just happened to be near its 61.8% Fibonacci retracement level of its bullish run. The stock has a short-term trend of higher lows and traders have been buying dips to its 10-dma this past week. Friday saw a breakout over potential resistance at the 21-dma, 100-dma and the $24.00 mark. The MACD is bullish and GLBL has broken its two-month trendline of lower highs. Aggressive traders may want to go long the stock now over $24.00. We see potential resistance near $24.50 so we're suggesting a trigger to buy it at $24.65. Be aware that GLBL also has potential resistance at its 50-dma near $25.50. Another observation that would suggest caution is the lack of volume on the rebound. We're listing a wide (aggressive) stop loss on this play but more conservative traders may want to start with a stop loss just under $23.00 or its 10-dma. Our target is the $28.00-29.00 range.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/30/07 (unconfirmed)
Average Daily Volume: 2.5 million

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Intel Corp. - INTC - cls: 24.79 change: +0.56 stop: 23.24

Company Description:
Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. (source: company press release or website)

Why We Like It:
The semiconductor sector looks like it more room to rebound before running out of steam. If the semis can keep the rally going it will definitely have a positive impact on the NASDAQ. Shares of INTC have rebounded sharply and the technical indicators have improved dramatically over the last several days. We're suggesting long positions now but traders can be patient. A breakout over $25.00 or another dip into the $24.25-24.00 zone could be used as potential entry points. There is potential resistance near the bottom of the July gap down around $25.30 and then again near $26.50. We're aiming for a rally into the $27.40-28.00 range.

Picked on August 26 at $24.79
Change since picked: + 0.00
Earnings Date 10/16/07 (unconfirmed)
Average Daily Volume: 67.8 million

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Radian Group - RDN - cls: 21.82 chg: +0.89 stop: 19.49

Company Description:
Radian Group Inc. is a global credit risk management company headquartered in Philadelphia with significant operations in New York and London. Radian develops innovative financial solutions by applying its core mortgage credit risk expertise and structured finance capabilities to the credit enhancement needs of the capital markets worldwide, primarily through credit insurance products. The company also provides credit enhancement for public finance and other corporate and consumer assets on both a direct and reinsurance basis and holds strategic interests in credit-based consumer asset businesses. (source: company press release or website)

Why We Like It:
This is a speculative, higher-risk play. The last three months have seen RDN fall from $62 to an intraday low of $15.20. A couple of weeks ago the stock put in a short-term bullish double-bottom type of pattern and the oversold bounce rallied to $25.75 before correcting. Before considering this play readers need to realize that there is the potential for headline risk. The potential merger between RDN and MTG is struggling to the point where MTG has actually filed a lawsuit against RDN requesting additional information from the company. MTG could be looking for some sort of way out from the merger, especially now given the market's aversion to anything related to sub-prime. Yes, we said the "s" word - sub-prime. RDN's implosion is a direct result of the sub-prime slime. RDN deals in mortgage insurance and is facing significant losses from the sub-prime meltdown. The question investors have to ask now is whether or not the risk has been priced into the stock and shares can try to rally or is this just a speed bump bounce on the way to further lows. It is worth noting that RDN has relatively high short interest and any further gains could spark some additional short covering. On a technical basis the stock is very oversold and traders were buying the dip near $20.00 on Friday. The stock will be prone to some volatility given the industry it's in. We have two targets. Our first target is the $25.50-25.75 range. Our second target is the $29.50-30.00 range. FYI: If you want a tighter stop loss consider $19.79, just under Friday's low. Plus, if you check out the Point & Figure chart you'll see that RDN has produced a triple-top breakout buy signal with a $43 target.

Picked on August 26 at $21.82
Change since picked: + 0.00
Earnings Date 10/24/07 (unconfirmed)
Average Daily Volume: 3.6 million

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Synalloy - SYNL - cls: 20.79 change: +1.34 stop: 18.95

Company Description:
Headquartered in Spartanburg, South Carolina, Synalloy Corporation has been in business since 1945 and employs over 440 people with operations in South Carolina, North Carolina, Tennessee, and Georgia. The Company is a diverse manufacturer comprised of two major operating segments: metals and chemicals. (source: company press release or website)

Why We Like It:
SYNL suffered a seven-week stretch of losses from mid-June through July. The stock finally found some support in the $17.00-17.50 zone and now the stock is building on a potential bottom. SYNL has a short-term pattern of higher lows and after such a big drop it doesn't take much to turn the technical indicators bullish. There is plenty of room for an oversold bounce and we are suggesting long positions with SYNL's rally past $20.00 on Friday. More conservative traders may want to wait for a rise past $21.75 or $22.00 before initiating positions (but if you do use a tighter stop loss). Our target is the $24.75-25.00 range. More aggressive traders may want to aim for the 50 or 200-dma overhead. FYI: A move over $22.00 would reverse the P&F chart into a new buy signal.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/07 (confirmed)
Average Daily Volume: 374 thousand

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XenoPort - XNPT - cls: 42.29 change: +0.69 stop: 39.75

Company Description:
XenoPort, Inc. is a biopharmaceutical company focused on developing a portfolio of internally discovered product candidates that utilize the body's natural nutrient transport mechanisms to improve the therapeutic benefits of existing drugs. (source: company press release or website)

Why We Like It:
The BTK biotech index has rallied right to resistance at its 50-dma, 200-dma and its multi-month trendline of lower highs. A breakout from here would be very bullish for the sector. Meanwhile shares of XNPT have rebounded with its peers over the last few days. Short-term technicals for XNPT have turned bullish again and the stock is already cracking resistance near $42 and its trendline of lower highs. We are suggesting long positions now although more patient traders may want to wait for a potential dip back towards the $40.50-41.00 zone. Be aware that the 50-dma still overhead could be resistance. Our target is the $47.25-47.50 range. You'll also want to keep an eye on the BTK biotech index. If the BTK fails to breakout then XNPT could struggle. We want to remind readers that trader biotech stocks always carries a higher-level of risk. There is always a chance that some test result or FDA decision could send shares gapping either direction making our stop loss useless.

Picked on August 26 at $42.29
Change since picked: + 0.00
Earnings Date 08/08/07 (confirmed)
Average Daily Volume: 198 thousand
 

New Short Plays

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