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New Plays
Long Plays
Short Plays
FDP None
PRXL  

Play Editor's Note: The market's breakdown under the November lows is very bearish. There is a growing chorus of market pundits who believe we are in a bear market. I agree with the view that the stock market is headed for the August lows. However, stocks just don't move in a straight line very long. We are way overdue for a bounce and the rebound will probably last for more than a day. I'm adding a couple of stocks showing relative strength so we're ready for the bounce.


New Long Plays

Fresh Del Monte - FDP - cls: 34.03 change: +1.05 stop: 31.85

Company Description:
Fresh Del Monte Produce Inc. is one of the worlds leading vertically integrated producers, marketers and distributors of high quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared food in Europe, Africa and the Middle East. (source: company press release or website)

Why We Like It:
Shares of FDP have a bullish trend of higher lows as it coils under resistance near $34.00. The stock actually broke out over that level today and did so on above average volume, which is bullish. We suspect that if the market sees a washout soon that FDP will dip back toward the $32.00 region. Thus we're suggesting readers buy the dip in the $33.00-32.00 range. We're placing our stop loss at $31.85. More aggressive traders may want to put their stop under last week's low (31.30). Readers might also want to consider a momentum entry point at $34.60. We're choosing to wait for a pull back. Our target is the $37.90-38.00 range.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/27/08 (unconfirmed)
Average Daily Volume: 779 thousand

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Parexel Intl. - PRXL - cls: 50.40 chg: +1.20 stop: 47.24

Company Description:
PAREXEL International Corporation is a leading global bio/pharmaceutical services organization, providing a broad range of knowledge-based contract research, medical communications and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. (source: company press release or website)

Why We Like It:
Investors are buying anything healthcare related as a safe haven play due to market and economic uncertainty. Shares of PRXL have been showing relative strength and the breakout over $50.00 looks like a new bullish entry point to buy the stock. We suspect that shares will get another dip before moving higher. Therefore we're suggesting a trigger to buy PRXL in the $49.50-48.50 range. We'll try and limit our risk with a stop loss at $47.24. More conservative traders could put their stop closer to $48.00. Our target is the $54.00-55.00 range. FYI: We don't have a lot of time. PRXL is due to report earnings on January 23rd and we do not want to hold over the report.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/23/08 (confirmed)
Average Daily Volume: 202 thousand
 

New Short Plays

None today.
 

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