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New Plays
Long Plays
Short Plays
AA BAS
BRS  
CSX  
GGB  
MIVA  
SYX  

New Long Plays

Alcoa - AA - cls: 39.35 change: +0.96 stop: 36.95

Company Description:
Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. (source: company press release or website)

Why We Like It:
The recent sideways consolidation in shares of AA may be coming to an end. The stock has been trading between $37 and $40 all month with a more recent range of $37 to $38.50. More aggressive traders may be tempted to buy Friday's bullish breakout over its 100-dma. We see resistance at $40.00 so we're suggesting a trigger to buy AA at $40.10. If triggered our target is the $44.50-45.00 range. Our time frame is six to eight weeks. FYI: The Point & Figure chart for AA is bullish and points to a $53 target.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/09/07 (confirmed)
Average Daily Volume: 11.5 million

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Bristow Group - BRS - cls: 50.40 chg: +1.25 stop: 47.90

Company Description:
Bristow Group Inc. is a major provider of helicopter services to the oil and gas industry worldwide. Through its subsidiaries, affiliates and joint ventures, the Company provides transportation services in most oil and gas producing regions including the U.S. Gulf of Mexico and Alaska, the North Sea, Africa, Mexico, South America, Australia, Russia, Egypt and the Far East. (source: company press release or website)

Why We Like It:
BRS is poised to breakout from its two-week consolidation. Aggressive traders could give BRS the benefit of the doubt and buy it now. We want to see a little more confirmation so we're suggesting a trigger to buy it at $50.51. If triggered our target is the $54.00-55.00 range, which is a little aggressive considering our time frame. BRS is due to report earnings on Monday, November 5th after the market's close. This gives us six trading days for the whole play. FYI: The Point & Figure chart is very bullish with a $60 target. This is an oil services stock.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/05/07 (confirmed)
Average Daily Volume: 210 thousand

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C S X Corp. - CSX - close: 44.76 change: +0.54 stop: 42.99

Company Description:
CSX Transportation Inc. is a principal operating company of CSX Corporation. CSX Corporation, based in Jacksonville, Fla., is one of the leading transportation companies, providing rail, intermodal and rail-to-truck transload services. The company's transportation network spans 21,000 miles with service to 23 eastern states and the District of Columbia, and connects to more than 70 ocean, river and lake ports. (source: company press release or website)

Why We Like It:
Sky-high oil prices make the railroads look a lot better than the trucking companies. Plus, the same rising oil only ensures a higher-demand for coal, which again benefits the railroads. Both CSX and the railroad index are climbing in a rising channel pattern. More aggressive traders could buy Friday's intraday bounce. We want to see a little more strength and a breakout over its short-term one-week trend of lower highs. We're suggesting a trigger to buy CSX at $45.15. If triggered our target is the $49.50-50.00 range. Our time frame is six to eight weeks. FYI: The P&F chart points to a $61 target. More conservative traders may want to try a tighter stop loss near $43.50.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/16/07 (confirmed)
Average Daily Volume: 6.1 million

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Gerdau Sa ADS - GGB - close: 30.37 change: +1.22 stop: 27.90

Company Description:
Gerdau S.A. is a Brazilian company focused on iron and steel products and sells them throughout the Americas.

Why We Like It:
GGB got a boost on Friday after being upgraded to a "buy". We see Friday's rally as a breakout from the bullish flag pattern built over the last couple of weeks. Readers have a choice for entry points. We're suggesting buying the stock now. You could wait for a new high over $30.60 and clear the earlier October high. Or you could wait for a dip back toward $29.00 and its 10-dma as an attractive entry point. We cannot find a confirmed earnings date for GGB but it normally reports in early November. We suspect that we still have a week to two weeks before the announcement, which we do not want to hold over. The lack of a confirmed report date does raise the risk on this play. Plus, there are several other steel-related companies reporting this week and their reports could influence trading in shares of GGB. Our target is the $33.50-35.00 range.

Picked on October 28 at $30.37
Change since picked: + 0.00
Earnings Date 11/07/07 (unconfirmed)
Average Daily Volume: 2.3 million

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MIVA Inc. - MIVA - close: 3.34 change: +0.26 stop: 2.99

Company Description:
MIVA, Inc. is a global digital media company with a mission to deliver valuable digital audiences to advertisers. MIVA has two focuses to its business: owning and operating a growing portfolio of consumer destination sites and category specific toolbars, through its MIVA Direct division; and running a third-party contextual Pay-Per-Click ad network focused on key vertical sectors, through its MIVA Ad Network division. MIVA, Inc. operates across North America and Europe. (source: company press release or website)

Why We Like It:
MIVA is a high-risk, speculative play. The company issued a third quarter earnings warning in early October. You can see the huge spike lower on the chart. The selling stalled near support around $3.00. MIVA has spent the last four weeks consolidating sideways along support until Friday, which saw a bullish breakout higher. MIVA is aggressive for a lot of reasons. The stock is volatile. It has a small float. Short interest is relatively high. We suspect that the bad news is already out so we're going to make an exception to our rule about holding over earnings. This time we plan to hold over the report in early to mid November. Our target is the $3.95-40.00 range.

Picked on October 28 at $ 3.34
Change since picked: + 0.00
Earnings Date 11/08/07 (unconfirmed)
Average Daily Volume: 252 thousand

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Systemax - SYX - close: 23.39 change: +0.90 stop: 21.59

Company Description:
Systemax Inc. (www.systemax.com), a Fortune 1000 company, utilizes an integrated system of branded e-commerce web sites, direct mail catalogs and relationship marketers to sell personal computers, computer supplies, consumer electronics and industrial products in North America and Europe. It also manufactures and sells personal computers under the Systemax and Ultra brands. (source: company press release or website)

Why We Like It:
It appears that the consolidation in SYX is over. The stock broke out higher back in early October and then spent the next couple of weeks digesting those gains. The $22 region looks like short-term support and technical indicators are improving again. Friday's move over the 10-dma looks like a new entry point to buy SYX. We believe the stock can breakout past the $25 level. Our target is the $27.00-27.50 range. Our time frame is six to eight weeks. FYI: the P&F chart is very bullish with a $40 target.

Picked on October 28 at $23.39
Change since picked: + 0.00
Earnings Date 12/17/07 (unconfirmed)
Average Daily Volume: 348 thousand
 

New Short Plays

Basic Energy - BAS - cls: 19.99 change: -0.07 stop: 20.85

Company Description:
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The company employs more than 4,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain States. (source: company press release or website)

Why We Like It:
We've already added one oil service stock as a bullish candidate this weekend. Now we're going to hedge our bets and suggest a short on an oil service stock. BAS has been under performing and has a consistently bearish trend of lower highs. The stock is flirting with a breakdown under support at $20.00. We are suggesting a trigger to short it at $19.75. If triggered our target is the $18.50-18.00 range. More conservative types could exit near the August lows around $18.60. The P&F chart is very bearish with a $9.00 target. We do not want to hold over the November 8th earnings report.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/08/07 (confirmed)
Average Daily Volume: 406 thousand
 

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