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New Plays
Long Plays
Short Plays
BTU None
EXM  
KSS  
TRA  

New Long Plays

Peabody Energy - BTU - close: 62.40 change: +1.94 stop: 57.69

Company Description:
Peabody Energy is the world's largest private-sector coal company, with 2007 sales of 238 million tons and $4.6 billion in revenues. Its coal products fuel approximately 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity. (source: company press release or website)

Why We Like It:
We suspect that the two-week correction in the coal stocks is about over. BTU is bouncing from a 50% retracement of its March-April rally. While readers could probably do okay buying BTU right here we are suggesting that traders buy a dip instead. Our official entry point is the $60.50-60.00 range. We'll put our stop loss under last Thursday's low. If triggered our short-term target is the $64.75-65.00 range. More aggressive traders could aim higher.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/22/08 (confirmed)
Average Daily Volume: 6.2 million

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Excel Maritime - EXM - cls: 43.12 chg: +3.06 stop: 38.29

Company Description:
Excel is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. (source: company press release or website)

Why We Like It:
The shipping stocks look bullish again. Investors are stepping in to buy the dip after a weeklong pull back. EXM looks very strong with Friday's rally over its 200-dma. Unfortunately, Friday's move was so big that we have a very wide (aggressive) stop loss under Thursday's low. More conservative traders will want to consider placing their stop closer to $40.00. Our target is the $49.00-50.00 range. We do not want to hold over the May earnings report. Our challenge is that the report date us unconfirmed. One source suggests that EXM might report as early as May 15th. This could be a very quick play since we will try to avoid holding over earnings. FYI: Additional shipping stocks you may want to check out are DSX and PRGN.

Picked on May 04 at $43.12
Change since picked: + 0.00
Earnings Date 05/22/08 (unconfirmed)
Average Daily Volume: 1.1 million

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Kohl's - KSS - close: 50.11 change: +1.13 stop: 48.49

Company Description:
Based in Menomonee Falls, Wis., Kohls is a family-focused, value-oriented specialty department store offering moderately priced, exclusive and national brand apparel, shoes, accessories, beauty and home products in an exciting shopping environment. Kohls operates 957 stores in 47 states and will celebrate the opening of its 1,000th store in the fall. (source: company press release or website)

Why We Like It:
We have had our eye on KSS ever since it broke through significant resistance at $48.00. However, we did not add it to the newsletter because we suspected that the $50 region and its 200-dma would also be a challenging hurdle to overcome. KSS has been dealing with the 200-dma for over a week now. We think shares can breakout higher this week. This is going to be a short-term play as we don't want to hold over the May 15th earnings report. Our suggested entry point to buy the stock is $51.05. If triggered we have two targets. Our short-term target is the $54.90 mark. Our secondary target is the $58.00-60.00 zone. The P&F chart looks very bullish with a $67 target.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/15/08 (confirmed)
Average Daily Volume: 5.8 million

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Terra Ind. - TRA - close: 40.03 change: +1.37 stop: 35.99

Company Description:
Terra Industries Inc., with 2007 revenues of $2.4 billion, is a leading international producer of nitrogen products. (source: company press release or website)

Why We Like It:
After a very painful two-week sell-off it looks like the fertilizer names are coming back. The 200-dma has been consistent support for TRA in the past and shares are bouncing there again. We are suggesting long positions now with a stop loss under Thursday's low. However, if given the opportunity, a dip to the $38.00 region would be a more attractive entry point. This can be a volatile group so expect some big swings. Our target is the $47.00-48.00 range. FYI: TRA is holding an analyst conference on May 5th.

Picked on May 04 at $40.03
Change since picked: + 0.00
Earnings Date 04/24/08 (confirmed)
Average Daily Volume: 4.6 million
 

New Short Plays

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