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ZOLT MEG

New Long Plays

Zoltek - ZOLT - cls: 43.06 change: +2.00 stop: 39.95

Company Description:
Zoltek Companies, Inc. is an applied technology and advanced materials company with principal executive offices in St. Louis, Missouri. The Company is a leader in the commercialization of carbon fibers through its development of a price-competitive, high-performance reinforcement for composites used in a broad range of commercial products. (source: company press release or website)

Why We Like It:
ZOLT's bullish trend of higher lows is starting to turned into what looks like a bullish breakout. The stock just cleared technical resistance at its 50-dma. We're suggesting bullish positions now in the $42-44 area. More conservative traders might want to wait for a rally past $44.00 since that might be short-term overhead resistance. Our target is the $$49.00-50.00 range. The P&F chart is bullish with a $51 target.

Picked on September 24 at $43.06
Change since picked: + 0.00
Earnings Date 12/23/07 (unconfirmed)
Average Daily Volume: 804 thousand
 

New Short Plays

Media General - MEG - cls: 26.83 change: -0.47 stop: 28.55

Company Description:
Media General is a multimedia company operating leading newspapers, television stations and online enterprises primarily in the Southeastern United States. (source: company press release or website)

Why We Like It:
MEG is in a very distinct long-term downtrend with a very clear pattern of lower highs and failed rallies. This trend has been pushing MEG towards support near $26.60, where buyers have been defending MEG for over a month. Should the stock breakdown we want to capture the sell-off. We're suggesting a trigger to short MEG at $26.45. If triggered our target is the $22.50-22.00 range. The Point & Figure chart is very bearish with a $10 target. We do not want to hold over the mid October earnings report. Due to the stock's trend the bears have been piling on top of this stock. Short interest is pretty high at more than 17% of the stock's 20.8 million share float. The combination of high short interest and a small float is a dangerous combination and raises the risk of a short squeeze. A stop loss will not always save us. More conservative traders may want to pass on this play.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/18/07 (confirmed)
Average Daily Volume: 390 thousand
 

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