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New Plays
Long Plays
Short Plays
CCRT AHG
CSC PEIX
HSII  
HZO  
PLXS  
RDC  

New Long Plays

CompuCredit - CCRT - close: 24.98 change: +0.35 stop: 23.45

Company Description:
CompuCredit Corporation is a specialty finance company and marketer of branded credit cards and related financial services. (source: company press release or website)

Why We Like It:
A quick glance at CCRT's chart and you can see that shares appear to have put in a significant bottom. Shares hit their nadir near $20 in early September and have slowly worked their way back toward resistance near $25. The trend of higher lows is bullish. Everything seems to be suggesting another run toward the $30.00 region. We are suggesting long positions now. Nimble traders could try and jump in on a dip near $24.00. Meanwhile more conservative traders may want to wait for a new relative high over $25.50, which is probably a good idea. This week brings a lot of earnings reports from the financial sector, which could strongly influence trading in CCRT. We're starting the play with a stop loss at $23.45 but consider using a tighter stop closer to $24.00. Our target is the $29.00-30.00 range but that may be too aggressive since we only have three weeks until CCRT's earnings report. FYI: The P&F chart is still bearish but a move over $26 would reverse that into a new buy signal.

Picked on October 14 at $24.98
Change since picked: + 0.00
Earnings Date 11/05/07 (unconfirmed)
Average Daily Volume: 710 thousand

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Computer Sciences - CSC - cls: 59.18 chg: +1.12 stop: 55.95

Company Description:
Computer Sciences Corporation is a leading global information technology (IT) services company. (source: company press release or website)

Why We Like It:
After a two-month consolidation shares of CSC are breaking out higher. This past week saw shares of CSC push through resistance in the $58.00-58.50 zone. Volume has been slowly rising on the rally, which is a good sign. There is potential resistance near $62.00-62.50 but we're aiming for the $64.00-65.00 range. The P&F chart shows a new triple-top breakout buy signal and a breakout through resistance with a $70 target. We can't find an earnings report date yet but CSC has a history of reporting in early November.

Picked on October 14 at $59.18
Change since picked: + 0.00
Earnings Date 11/02/07 (unconfirmed)
Average Daily Volume: 1.3 million

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Heidrick & Struggles - HSII - cls: 40.20 chg: +1.58 stop: 37.99

Company Description:
Heidrick & Struggles International, Inc. is the world's premier provider of senior-level executive search and leadership consulting services, including talent management, board building, executive on-boarding and M&A effectiveness. (source: company press release or website)

Why We Like It:
Expectations for a slow down in hiring and a downgrade to a "sell" back in early September sent shares of HSII plunging. The stock found support at $35.00 and has managed to rebound. The stock pushed back through resistance near $38.00 in early October and has already retested the $38 level as new support. We see Friday's rebound as a new bullish entry point to ride the rest of the rebound attempt. There is potential resistance at the 50-dma around $42.50. Our target is the $44.00-45.00 range. We do not want to hold over the end of October earnings report.

Picked on October 14 at $40.20
Change since picked: + 0.00
Earnings Date 10/30/07 (confirmed)
Average Daily Volume: 353 thousand

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Marinemax Inc. - HZO - cls: 15.85 chg: +0.66 stop: 15.24

Company Description:
Headquartered in Clearwater, Florida, MarineMax is the nation's largest recreational boat and yacht retailer. (source: company press release or website)

Why We Like It:
HZO is still very much in a bearish down trend. However, it looks like shares may have produced a short-term bottom over the last couple of weeks. Traders bought the dip on Friday near $15 and its 10-dma. Aggressive traders could go long the stock now. We do consider this an aggressive, higher-risk play since we're fighting the trend, which is bearish. Our suggested trigger to go long the stock is at $16.26, which would be a new relative high. If triggered at $16.26 or target is the $17.90-18.00 range. Watch for potential resistance at the 50-dma. FYI: The latest data puts short interest at more than 33% of the small 17 million-share float. That's a very high amount of short interest and it wouldn't take much for the shorts to get squeezed!

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/01/07 (unconfirmed)
Average Daily Volume: 454 thousand

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Plexus - PLXS - close: 28.63 change: +1.17 stop: 27.49

Company Description:
Plexus is an award-winning participant in the Electronics Manufacturing Services (EMS) industry, providing product design, test, manufacturing and fulfillment and aftermarket solutions to branded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace industries. (source: company press release or website)

Why We Like It:
PLXS has been pretty bullish since the mid September upgrade. Traders have been buying the dips and now the stock is poised to breakout over resistance near $29.00. We are suggesting a trigger to buy the stock at $29.05. If triggered our target is the $32.00-32.50 range. We do not want to hold over the October 31st earnings report. FYI: The P&F chart points to a $49 target.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/31/07 (confirmed)
Average Daily Volume: 522 thousand

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Rowan Companies - RDC - cls: 40.18 change: +1.30 stop: 37.99

Company Description:
Rowan Companies, Inc. is a major provider of international and domestic offshore contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. (source: company press release or website)

Why We Like It:
Crude oil is hitting new highs and the Oil Services sector has broken out to new highs after a multi-week sideways consolidation. Shares of RDC are also breaking out higher from a multi-week consolidation. Volume has been strong on the rally, which is another positive sign. Our biggest concern would be a correction sell-off in crude oil, which is long overdue. Our target in RDC is the $44.00-44.50 range.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/01/07 (confirmed)
Average Daily Volume: 2.4 million
 

New Short Plays

Apria Healthcare - AHG - cls: 25.31 change: -1.65 stop: 26.75

Company Description:
Apria provides home respiratory therapy, home infusion therapy and home medical equipment through approximately 500 locations serving patients in all 50 states. With over $1.5 billion in annual revenues, it is one of the nation's leading home healthcare companies. (source: company press release or website)

Why We Like It:
We cannot find anything specific in the news that might account for AHG's 6% sell-off on volume that is more than three times the daily average. The stock has broken down from a multi-week consolidation pattern that re-affirms the bearish trend of lower highs. We are suggesting short positions now with AHG under $26.00. Readers can choose to open positions now or wait for a bounce and failed rally near the $25.75-26.00 zone. Our target is the $22.50-22.00 range. We do not want to hold over the (unconfirmed) October 25th earnings report. FYI: AHG has relatively high short interest. The latest data puts short interest at more than 15% of the 43.3 million-share float. This raises the risk of a short squeeze.

Picked on October 14 at $25.31 <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume: 696 thousand

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Pacific Ethanol - PEIX - cls: 9.03 change: -0.38 stop: 9.75

Company Description:
Pacific Ethanol is the largest West Coast-based marketer and producer of ethanol. (source: company press release or website)

Why We Like It:
A glut of ethanol has cooled Wall Street's desire for shares of PEIX. The stock is in a long-term downtrend. The current consolidation looks like it's about to roll over into a new leg lower. Shares have resistance near $9.70 and short-term support near $8.50. We are suggesting shorts now although some readers may want to wait for a new decline under $9.00. Our target is the $7.75-7.50 range. Readers should note that the most recent data puts short interest at more than 16% of PEIX's 34.2 million-share float, which would raise the risk of a short squeeze.

Picked on October 14 at $ 9.03
Change since picked: + 0.00
Earnings Date 11/20/07 (unconfirmed)
Average Daily Volume: 839 thousand
 

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