Option Investor
New Plays
Click here to email James
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
None BCSI
  DISH

New Long Plays

None today.
 

New Short Plays

Blue Coat Sys. - BCSI - close: 24.80 change: -0.59 stop: 26.26

Company Description:
Blue Coat secures Web communications and accelerates business applications across the distributed enterprise. Blue Coats family of appliances and client-based solutions deployed in branch offices, Internet gateways, end points, and data centers provide intelligent points of policy-based control enabling IT organizations to optimize security and accelerate performance between users and applications. (source: company press release or website)

Why We Like It:
What's the real story with BCSI? The company recently reported earnings on February 21st and everything looked good. EPS numbers were good. Revenues were good. Management even raised guidance. So why are shares selling off? We don't know the answer yet but technicals are suggesting more downside ahead. The consolidation from its January low looks like a big bear flag pattern and the reaction to earnings was a big bearish engulfing candlestick. We are suggesting that readers short BCSI on a breakdown under support at $24.00. Our suggested entry point is $23.75. If triggered our target is the $20.25-20.00 zone. There is potential support at the January low near $22.00-21.80 but if BCSI breaks lower we think it's going to $20. FYI: The P&F chart is still bullish. Meanwhile BCSI is presenting at an investor conference on March 3rd. By the way, technical traders will note that if this is a big, bear flag then our $20 target is not low enough. We also need to note that the most recent data puts short interest at 14.5% of the 36.2 million share float. That is not a very big float and a relatively high amount of short interest, which raises the risk of a short squeeze.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/21/08 (confirmed)
Average Daily Volume: 1.3 million

---

Dish Network - DISH - close: 29.73 chg: +0.55 stop: 30.26

Company Description:
DISH Network Corporation provides more than 13.695 million satellite TV customers with industry-leading customer satisfaction, which has surpassed major cable companies for seven years running.(source: company press release or website)

Why We Like It:
It has been a horrible four months for shares of DISH. Now it looks like the stock's four-week attempt at an oversold bounce is rolling over. The company recently reported earnings on February 26th and the results were worse than expected. The stock has broken its short-term bullish trend of higher lows. Plus, we're seeing traders sell the rallies on the intraday chart in the last two days. We are suggesting readers short DISH on a breakdown under $29.00. Our suggested entry point is $28.75. There is potential support near $27 and its January lows. However, our target is going to be the $26.00-25.00 zone. FYI: The latest data put short interest at 2.3% of the 202 million-share float.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/28/08 (unconfirmed)
Average Daily Volume: 2.6 million
 

Premier Investor New Play Archives