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New Plays
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New Plays
Long Plays
Short Plays
FMC BC
TWX DF
  PCAR
  SBUX

Play Editor's Note: We have a lot of stocks on our watch list. Just a few bullish candidates we're following are: VLCCF, FRX, SLM. A few bearish candidates are: COH, LEN, and SNDK.


New Long Plays

FMC Corp. - FMC - close: 55.31 chg: +0.42 stop: 53.45

Company Description:
FMC Corporation is a diversified chemical company serving agricultural, industrial and consumer markets globally for more than a century with innovative solutions, applications and quality products. The company employs approximately 5,000 people throughout the world. (source: company press release or website)

Why We Like It:
FMC displayed a lot of momentum last week and shares look poised to breakout past resistance near $56.00. Volume has been strong on the rally, which is a good sign for the bulls. We are suggesting a trigger above resistance at $56.01. If triggered we have two targets. Our short-term target is the $59.75-60.00 zone. Ours second, longer-term target is the $64.00-65.00 range. The Point & Figure chart is bullish with a triple-top breakout and a $66 target.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/30/08 (unconfirmed)
Average Daily Volume: 718 thousand

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Time Warner - TWX - close: 16.70 chg: +0.26 stop 15.45

Company Description:
Time Warner Inc. is a leading media and entertainment company, whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing. (source: company press release or website)

Why We Like It:
It looks like media giant TWX may have seen it's stock put in a bottom. Shares have broken through the bearish trendline of lower highs and resisted any real profit taking in spite of the market's Thursday-Friday move lower. TWX was out performing on Friday with a 1.5% gain in a lackluster market. We are suggesting readers consider bullish positions in the $16.25-17.00 zone. There is potential technical resistance at the 100-dma near $17.00 so don't be surprised to see a pull back once that level is reached. Our target is the $17.90-18.00 range. We're using a stop loss at $15.45. More conservative traders may want to place their stop closer to $16.00.

Picked on February 17 at $16.70
Change since picked: + 0.00
Earnings Date 05/01/08 (unconfirmed)
Average Daily Volume: 24.5 million
 

New Short Plays

Brunswick - BC - close: 17.03 chg: -0.32 stop: 18.31

Company Description:
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Teignbridge propellers; MotoTron electronic controls; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston Whaler, Cabo Yachts, Crestliner, Cypress Cay, Harris, Hatteras, Kayot, Laguna, Lowe, Lund, Maxum, Meridian, Ornvik, Palmetto, Princecraft, Quicksilver, Rayglass, Savage, Sea Boss, Sea Pro, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg Marine, Diversified Marine and Benrock parts and accessories distributors; IDS dealer management systems; Life Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling centers, equipment and consumer products; Brunswick billiards tables; and Dynamo, Tornado and Valley pool tables, Air Hockey and foosball tables. (source: company press release or website)

Why We Like It:
BC is a diverse company but if the consumer is slowing then all its operations could be hurt. Shares produced a bearish reversal on February 4th and the oversold bounce from February 11th has already rolled over. However, we want to see a little more confirmation so we're suggesting a trigger to short the stock at $16.75. If triggered our target is the $15.05-14.55 zone near its January lows. The P&F chart is bearish with an $8.00 target. FYI: We are at risk for a short squeeze. The most recent data puts short interest at 11.2% of the 87.8 million-share float. That is about 7 days worth of short interest. The stock has already slipped a lot from last week's high, which is why we have a relatively wide (aggressive) stop loss.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 1.8 million

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Dean Foods - DF - close: 24.75 chg: -0.05 stop: 25.05

Company Description:
Dean Foods Company is one of the leading food and beverage companies in the United States. Its Dairy Group division is the largest processor and distributor of milk and other dairy products in the country, with products sold under more than 50 familiar local and regional brands and a wide array of private labels. (source: company press release or website)

Why We Like It:
DF recently reports earnings and the results were not impressive. Furthermore the company issued a warning and the stock gapped down on the news. Now DF is nearing significant support in the $24.00-24.20 zone. Should DF breakdown under the $24.00 mark it could freefall to the $20.00 level. We are suggesting a trigger to short it at $23.95. If triggered our target is the $20.25-20.00 range. FYI: A move under $24.00 would produce a new quadruple bottom breakdown sell signal. Our biggest risk is a short squeeze. The most recent data puts short interest at 7.7% of the 127 million-share float or about 9 days worth of short interest, which is significant.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/13/08 (confirmed)
Average Daily Volume: 1.6 million

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PACCAR - PCAR - close: 42.69 change: -0.52 stop: 44.05

Company Description:
PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. (source: company press release or website)

Why We Like It:
Shares of PCAR are stuck in a bearish trend and look ready to breakdown under support near $42.00. If it does breakdown we want to capture the next leg lower. We are suggesting a trigger to short PCAR at $41.95. If triggered our target is the $38.30-38.00 zone. The Point & Figure chart is bearish with a $26 target but it does show support near $38.00. FYI: On the daily chart the intraday low for January 23rd looks like $41.58 but that appears to be a bad tick. On the chart the 200-week moving average is nearing $38.20.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 3.5 million

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Starbucks - SBUX - close: 18.29 chg: +0.11 stop: 18.76

Company Description:
Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment. (source: company press release or website)

Why We Like It:
If the consumer is slowing down then SBUX is likely to sell fewer high-priced coffee drinks. The stock's trend looks incredibly bearish with a very clear pattern of lower highs that is poised to culminate in a new multi-year low. Currently SBUX is trying to hold support near $18.00. A breakdown from here and it could be a straight shot to $15.00. Unfortunately, the intraday low on January 22nd was $17.66. We're suggesting readers short SBUX with a trigger to open positions at $17.49. If triggered our target is the $15.05-15.00 zone. More aggressive traders could aim lower since the P&F chart already points to a $3.00 target. FYI: The most recent data puts short interest at 3.4% of the 703 million-share float, which is about 2 days worth of short interest.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/30/08 (unconfirmed)
Average Daily Volume: 16.5 million
 

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