Option Investor
New Plays
Click here to email James
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
CY SNDK

Play Editor's Note: We are not adding a lot of new plays to the newsletter tonight. The Friday late-afternoon spike on the potential bailout of ABK is a real wildcard. No one knows if a deal will get done or not. The market looked ready to breakdown from its consolidation and now it might see a short-covering rally higher. I suggest readers step back and take a wait and see approach.


New Long Plays

Cypress Semiconductor - CY - close: 22.42 chg: -0.12 stop: 21.75

Company Description:
Cypress delivers high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and exceptional system value. CY also owns SunPower Corp. (SPWR) who makes solar electric power products.

Why We Like It:
CY looks like a potential buy here. The stock has built a bullish double bottom pattern with the January and February lows. The oversold bounce has pulled back a bit so we're suggesting a trigger to buy CY at $23.51. The Point & Figure chart is very bullish with a base of support along its rising trendline of support and a $33 upside target. If we are triggered at $23.51 our short-term target is the $27.00-27.50 range near its 200-dma. We'll have to watch out for potential resistance at its descending 50-dma.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 7.5 million
 

New Short Plays

SanDisk - SNDK - close: 25.65 change: -0.19 stop: 26.15

Company Description:
SanDisk Corporation, the inventor and worlds largest supplier of flash storage cards, is a global leader in flash memory from research, manufacturing and product design to consumer branding and retail distribution. (source: company press release or website)

Why We Like It:
In spite of calls that the worst may be behind some of the memory makers the stocks continue to look bearish. SNDK is trying to stage a bottom here near $25.00 but the trend of lower highs suggest another breakdown coming. We are suggesting that readers short SNDK under $24.00 with a trigger at $23.99. The January 23rd low was $24.29. If we are triggered at $23.99 our target is the $20.15-20.00 zone. The $20.00 level has been significant support in the past. Please note that SNDK could see some volatility on Monday as the company has an analyst meeting February 25th.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 8.9 million
 

Premier Investor New Play Archives