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New Long Plays

Copa Holdings - CPA - close: 31.40 change: +1.34 stop: 29.65

Company Description:
Copa Holdings, through its Copa Airlines and AeroRepublica operating subsidiaries, is a leading Latin American provider of passenger and cargo service. (source: company press release or website)

Why We Like It:
One popular stock market pundit has been known to say that "any day the stock market is open it's a good day to sell the airlines." When you consider our long-term bullish outlook on oil we tend to agree with him. However, that doesn't mean there won't be short-term opportunities to buy a bounce. Right now crude oil looks a little toppy and could see more profit taking. If crude oil does slip lower then the airlines should bounce. Shares of CPA looks tempting because the stock is just now starting to bounce from very significant support at the $30.00 level. Because the relationship between oil and the airlines can be volatile we would consider this a more aggressive play. We're suggesting a stop loss under the recent low. Our target is the $34.50-35.00 zone - although there might be some resistance at the $34.00 mark.

Picked on May 27 at $31.40
Change since picked: + 0.00
Earnings Date 05/08/08 (confirmed)
Average Daily Volume: 589 thousand


Corning Inc. - GLW - close: 27.27 chg: +0.22 stop: 26.45

Company Description:
Corning Incorporated is the world leader in specialty glass and ceramics. (source: company press release or website)

Why We Like It:
Shares of GLW are starting to recover from last week's correction. The trend is positive and we think the company should benefit from consumer spending their stimulus checks on new flat panel TVs. We're suggesting bullish positions now with a stop loss at $26.45. An alternative entry point would be to wait for a rise past $27.50 and an alternative and more aggressive stop loss would be at $26.24. Our target is the 2006 high at $29.60.

Picked on May 27 at $27.27
Change since picked: + 0.00
Earnings Date 07/24/08 (unconfirmed)
Average Daily Volume: 13.3 million


General Motors - GM - close: 17.42 chg: -0.18 stop: 16.84

GM is currently a bearish candidate on the PremierInvestor Newsletter. However, we're waiting for a failed rally near $20.00 to open shorts. In the mean time we think nimble traders could capture the bounce back toward $20.00. Today's session was a high-volume decline with a bounce back from its intraday lows. This could be a short-term bottom. However, we're essentially calling a "bottom" in a down trend and that is a very aggressive thing to do. We're suggesting a very speculative, short-term bullish trade on GM with a stop loss under today's low. Our target is $19.50. The most recent data listed short interest at more than 17% of the 530 million-share float.

Picked on May 27 at $17.42
Change since picked: + 0.00
Earnings Date 07/31/08 (unconfirmed)
Average Daily Volume: 18.7 million


Mercury General - MCY - close: 50.54 change: +0.73 stop: 49.65

Company Description:
Mercury General Corporation and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent producers in many states. (source: company press release or website)

Why We Like It:
MCY has been out performing the IUX insurance index for weeks. The stock looks like it's about to finish a three-week consolidation phase. We're suggesting readers buy the stock at $50.75. If triggered our short-term target is the $54.00-55.00 zone. The P&F chart is a lot more bullish with a $68 target.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/05/08 (confirmed)
Average Daily Volume: 264 thousand

New Short Plays

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