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New Plays
Long Plays
Short Plays
None BOBE
  CLI
  CHRW
  GVA

Play Editor's Note: Our market bias is bearish and it wasn't hard to find bearish candidates. A few stocks we are keeping an eye on as potential plays are: EMS, PSYS, LAMR, PDCO, SBUX, SLAB, DBD, GLW, GOLD, and TTEC.


New Long Plays

None today.
 

New Short Plays

Bob Evans Farms - BOBE - cls: 29.01 chg: -0.82 stop: 31.75

Company Description:
Bob Evans Farms, Inc. owns and operates full-service restaurants under the Bob Evans and Mimi's Cafe brand names. At the end of the second fiscal quarter ended Oct. 26, 2007, Bob Evans owned and operated 579 family restaurants in 18 states, primarily in the Midwest, mid-Atlantic and Southeast regions of the United States, while Mimi's Cafe owned and operated 118 casual restaurants located in 22 states, primarily in California and other western states. (source: company press release or website)

Why We Like It:
The market is concerned about the coming recession and a slow down in the consumer. That's why almost anything retail or restaurant related is suffering. BOBE rallied sharply back in November but that has run into resistance near $32 and the stock looks poised to begin a new leg lower. Friday's close under the 50-dma is bearish. The P&F chart is bearish and points to a $23 target. BOBE does have potential support near $27.00 but we're aiming for the $25.25-25.00 zone. More conservative traders may want to wait for a decline under $28.50 before initiating positions. FYI: The most recent data puts short interest at 11.6% of the 32.74 million-share float. That is a relatively high amount of short interest and raises the risk of a short squeeze.

Picked on December 16 at $29.01
Change since picked: + 0.00
Earnings Date 02/14/08 (unconfirmed)
Average Daily Volume: 467 thousand

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Mack-Cali Realty - CLI - cls: 32.74 chg: -0.76 stop: 35.15

Company Description:
Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 302 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 34.9 million square feet. (source: company press release or website)

Why We Like It:
Almost anything REIT-related looks bearish right now. What caught our eye on CLI was the stock's very recent breakdown from its trading range. Broken support near $34.00 should now be overhead resistance. Our target is the $30.25-30.00 range. The P&F chart is bearish with a $27 target.

Picked on December 16 at $32.74
Change since picked: + 0.00
Earnings Date 02/21/08 (unconfirmed)
Average Daily Volume: 751 thousand

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C.H.Robinson - CHRW - cls: 51.52 chg: -0.98 stop: 54.55

Company Description:
Founded in 1905, C.H. Robinson Worldwide, Inc., is a global provider of multimodal transportation services and logistics solutions, serving over 25,000 customers through a network of 218 offices in North America, South America, Europe, and Asia. (source: company press release or website)

Why We Like It:
Investors are starting to worry about a slow down in the economy and oil prices look like they are stabilizing near $90, which is bad news for the transports. Both the major indices and the transportation index look like they are poised to move lower. CHRW could see a lot of profit taking after its sharp rally from the November lows. The weekly chart shows CHRW starting to roll over under the top edge of its wide trading range (see chart). Friday's close under $52.00 looks like our entry point for shorts. Our target is the $46.00 level. More conservative traders may want to get out near $47.50 while aggressive traders could aim for real support near $45.00. The P&F chart points to a $34 target. FYI: The most recent data puts short interest at 5.2% of the stock's 166.8 million-share float. That is a relatively high amount and raises the risk of a short squeeze.

Picked on December 16 at $51.52
Change since picked: + 0.00
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume: 1.7 million

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Granite Constr. - GVA - close: 38.73 change: -2.07 stop: 42.15

Company Description:
Granite Construction Incorporated is a member of the S&P 400 Index, Russell 2000 and the Domini 400 Social Index and is the parent company of Granite Construction Company, one of the nation's largest heavy civil contractors and construction materials producers. Granite Construction Company serves both public and private sector clients through its offices nationwide. (source: company press release or website)

Why We Like It:
Shares of GVA have been pounded these past several months and it doesn't look like it's over. The oversold bounce from its November lows has run into new resistance near $42.00. Actually shares were in a $40-42 trading range. Friday's breakdown is a new entry point for shorts. Our only complaint was the low volume on the move. We're suggesting shorts with GVA under $40. Our target is the $34-33 range near its lows for the year. FYI: The most recent date puts short interest at 7.8% of the 34.4 million-share float.

Picked on December 16 at $38.73
Change since picked: + 0.00
Earnings Date 02/11/08 (unconfirmed)
Average Daily Volume: 1.1 million
 

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