Option Investor
New Plays
Click here to email James
Printer friendly version
New Plays
Long Plays
Short Plays
UST None

New Long Plays

UST Inc. - UST - close: 53.93 change: +1.20 stop: 51.99

Company Description:
UST Inc. is a holding company for its principal subsidiaries: U.S. Smokeless Tobacco Company and Ste. Michelle Wine Estates. U.S. Smokeless Tobacco Company is a leading producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Red Seal and Husky. (source: company press release or website)

Why We Like It:
UST would normally be considered a defensive play. Consumers still buy tobacco and alcohol no matter how bad the economy is. Shares of UST have a bullish trend of higher lows with volume surging on the rallies, which is normally a bullish sign. The stock is poised to breakout over resistance near $54.00 and its 200-dma. We're suggesting a trigger to buy the stock at $54.41, which would be a new relative high above its October peak. If triggered at $54.41 our target is the $58.00-60.00 range. We would expect some short-term resistance near $56.00. The P&F chart is bullish with a $67 target.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume: 1.0 million


Xilinx - XLNX - close: 23.48 change: +0.46 stop: 22.59

Company Description:
Xilinx, Inc. is the worldwide leader of programmable logic solutions. (source: company press release or website)

Why We Like It:
The semiconductors still look bearish and we have a couple of bearish plays currently in the newsletter in the semiconductor sector. However, if this market rebound has any legs then tech stocks will have to participate and the NASDAQ helped lead the rally today. We remain skeptical of the rally and by adding XNLX we have sort of a hedge against our shorts. What makes XLNX an attractive bullish candidate is that the stock is bouncing from significant support near $22.60 dating back to January 2007. We would consider this an aggressive, higher-risk play since XNLX is still in a short-term down trend. We would expect some resistance near $24.00. Our short-term target is the $24.90-25.00 range. More aggressive traders may want to aim higher. We're suggesting a stop under the recent low. FYI: If you look at the weekly chart it almost looks like a bearish head-and-shoulders pattern, which is just another reason why we'd consider this higher-risk.

Picked on November 13 at $23.48
Change since picked: + 0.00
Earnings Date 01/17/08 (unconfirmed)
Average Daily Volume: 5.6 million

New Short Plays

None today.

Premier Investor New Play Archives