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New Plays
Long Plays
Short Plays
EGN None
KOL  
MOO  
PHM  

New Long Plays

Energen - EGN - close: 63.86 chg: +0.98 stop: 61.69

Company Description:
Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and natural gas liquids reserves and natural gas distribution in central and north Alabama. (source: company press release or website)

Why We Like It:
Shares of EGN have spent more than two months consolidating sideways within its longer-term up trend. The stock has recently rallied toward resistance and is poised to breakout higher. We are suggesting readers buy the stock at $64.65. More conservative traders may want to wait for a new rise past $65.00. Our short-term target is the $69.50-70.00 zone. If we have time we'll consider a secondary, more aggressive target above $70. The P&F chart is bullish with a $77 target. We do not want to hold over the late April earnings report.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 657 thousand

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Coal ETF - KOL - close: 40.89 change: +1.89 stop: 37.95

Company Description:
Market VectorsCoal ETF is an exchange-traded fund that seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Stowe Coal Index. KOL generally holds all of the securities that comprise the Index in proportion to their weighting in the Index. (source: company press release or website)

Why We Like It:
Coal stocks started to bottom a couple of weeks ago after Goldman Sachs upgraded the sector. This past week has seen the group breakout over some resistance levels and we're seeing a lot more buy signals. Volume has also picked up on the rally, which is a good sign for the bulls. Instead of just picking an individual coal stock we're suggesting the coal ETF (KOL). However, KOL soared on Friday and we don't want to chase it so we're suggesting readers buy a dip in the $39.50-39.00 zone. If triggered our target is the $44.75-45.00 range.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume: 240 thousand

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Agribusiness ETF - MOO - close: 57.14 chg: +1.85 stop: 53.95

Company Description:
The Market VectorsAgribusiness ETF is an exchange-traded fund that seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal Agribusiness Index. MOO generally holds all of the securities that comprise the Index in proportion to their weighting in the Index. (source: company press release or website)

Why We Like It:
The agriculture stocks are back in favor again. This past week has seen better than expected earnings results from both MON and MOS. This has fueled a bullish breakout over resistance in the MOO. Instead of chasing it here we want to buy a dip in the $56.00-55.00 zone. If triggered our target is the $59.85-60.00 range. The Point & Figure chart is bullish with a $72 target.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume: 1.0 million

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Pulte Homes - PHM - close: 15.81 chg: -0.10 stop: 14.95

Company Description:
Pulte Homes, Inc., based in Bloomfield Hills, Mich., is one of America's largest home building companies with operations in 51 markets and 26 states. (source: company press release or website)

Why We Like It:
The homebuilders just turned in a very strong week but we suspect there is more to come. This was a heavily shorted group and many of them, including PHM, could see another short squeeze. The most recent data lists short interest at more than 18% of the 212 million-share float. We're also watching the HGX homebuilding index and the DJUSHB index. Both indices are poised to breakout over very significant resistance. If they do stocks like PHM could have another stellar week. The Point & Figure chart for PHM is bullish with a $27 target. We are suggesting readers buy PHM at $16.65. If triggered our first target is the $19.90-20.00 zone. This should be considered an aggressive, higher risk play because the homebuilding stocks have become very volatile and subject to a lot of whipsaws. Plus, due to volatility, we're playing with a wide stop loss. We do not want to hold over PHM's earnings report in late April.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/23/08 (confirmed)
Average Daily Volume: 10.0 million
 

New Short Plays

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