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New Plays
Long Plays
Short Plays
LXK None
NITE  
SYNL  
WRLD  

New Long Plays

Lexmark - LXK - close: 41.06 change: +0.83 stop: 38.95

Company Description:
Lexmark International, Inc. provides businesses and consumers in more than 150 countries with a broad range of printing and imaging products, solutions and services that help them to be more productive. In 2006, Lexmark reported $5.1 billion in revenue. (source: company press release or website)

Why We Like It:
This should be short-term two-week play. LXK is expected to report earnings on October 23rd and we do not want to hold over the report. Shares have built what appears to be a significant bottom over the last couple of months. The recent breakout over resistance at $40.00 is bullish and LXK has managed to hold this level for several days. We're suggesting bullish positions following today's bounce from $40.00. Our suggested stop loss is at $38.95 but readers could probably get away with a stop loss closer to the $40.00 level. Our short-term target is the $44.85-45.00 range. FYI: The P&F chart has produced a bullish reversal with a $52 target.

Picked on October 09 at $41.06
Change since picked: + 0.00
Earnings Date 10/23/07 (confirmed)
Average Daily Volume: 2.1 million

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Knight Capital - NITE - cls: 13.01 change: +0.39 stop: 12.45

Company Description:
Knight Capital Group, Inc. is a leading financial services firm that provides voice and electronic access to the capital markets across multiple asset classes for buy-side, sell-side and corporate clients, and asset management for institutions and private clients. (source: company press release or website)

Why We Like It:
The broker-dealer stocks are rebounding and we suspect that the investment service stocks like NITE will follow them higher. Shares of NITE have already seen their technical indicators turn bullish. The stock broke through short-term resistance at $13.00 today. Aggressive traders may want to go long the stock now. We want to see a breakout over its 50-dma. We're suggesting a trigger to buy it at $13.25. If triggered our target is the $14.65-15.00 range. We would expect some resistance near $14.00. This is a short-term play and we plan to exit ahead of the mid October earnings.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/18/07 (unconfirmed)
Average Daily Volume: 2.0 million

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Synalloy Corp. - SYNL - cls: 22.39 change: +1.12 stop: 19.99

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:
It looks like SYNL has turned the corner and reversed back into a bullish posture. The stock has produced a bullish double-bottom pattern with the lows in August and September. The late September breakout over resistance at $20.00 was pretty impressive. Traders bought the dip near $20.00 as the stock retested old resistance as new support. Our biggest risk that we can see is the lack of an earnings report. We just can't find any sort of report date for its upcoming third quarter earnings. Without a report date to avoid holding over earnings we have to label this a high-risk play. We do want to note that the P&F chart has produced a spread triple-top breakout buy signal with a $34 target. Plus, SYNL has a relatively high degree of short interest, which could fuel the rallies. We're suggesting positions now. There is potential resistance near $25.00 but our target is the $27.00-28.00 range near its 200-dma.

Picked on October 09 at $22.39
Change since picked: + 0.00
Earnings Date 07/19/07 (confirmed)
Average Daily Volume: 171 thousand

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World Accpetance Corp. - WRLD - cls: 33.93 chg: +0.74 stop: 31.99

Company Description:
World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 811 offices in eleven states and Mexico. It is also the parent company of ParaData Financial Systems, a provider of computer software solutions for the consumer finance industry. (source: company press release or website)

Why We Like It:
WRLD is recovering from its July 2007 sell-off. The stock is building on a bullish pattern of higher lows. More recently WRLD has been consolidating the mid September rally but this consolidation looks like it's about to end. Traders have been buying dips in the $32.50 zone. We're suggesting a stop loss at $31.99. The P&F chart points to a $46 target. We're aiming for the $37.25-38.00 range. We only have two weeks and plan to exit ahead of the October 23rd earnings report.

Picked on October 09 at $33.93
Change since picked: + 0.00
Earnings Date 10/23/07 (confirmed)
Average Daily Volume: 298 thousand
 

New Short Plays

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