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New Plays
Long Plays
Short Plays
ADPT None
BBG  
BJS  
WMS  

Play Editor's note: I am cautiously bullish. I think the market is poised to rally for a few more days but I am concerned that the market might roll over so don't get married to any of your bullish positions and be prepared to switch to bearish plays.


New Long Plays

Adaptec - ADPT - close: 3.25 change: +0.11 stop: 2.99

Company Description:
Adaptec, Inc. provides trusted storage solutions that reliably move, manage, and protect critical data and digital content. (source: company press release or website)

Why We Like It:
The computer storage device "sector" is on the rebound. We like ADPT as an aggressive play in this sector because shares are breaking out from a multi-day consolidation phase and breaking out over its 200-dma. We're suggesting bullish positions now but more conservative traders might want to wait for a rally over $3.30. Our target is the December 2007 highs. We'll try to exit in the $3.65-3.70 zone. The stock can be somewhat volatile so we do consider this a higher-risk play. FYI: The most recent data listed short interest at more than 7% of the 118 million-share float. Based on ADPT's average daily volume that is a lot of short interest and the stock could see a short squeeze.

Picked on May 28 at $ 3.25
Change since picked: + 0.00
Earnings Date 05/08/08 (confirmed)
Average Daily Volume: 559 thousand

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Bill Barrett Corp. - BBG - cls: 55.06 change: +1.01 stop: 52.95

Company Description:
Bill Barrett Corporation, headquartered in Denver, Colorado, explores for and develops natural gas and oil in the Rocky Mountain region of the United States. (source: company press release or website)

Why We Like It:
The oil and energy sector is bouncing from its trendline of higher lows. BBG has followed suit. This stock is also bouncing from the top of its gap higher back in early May when the company reported earnings. We're suggesting readers buy the stock's rebound with a tight stop loss under this week's low. Our target is the $59.50-60.00 zone. More aggressive traders may want to aim higher. FYI: Traders should be aware that the weekly oil inventory report comes out tomorrow. If there is an unexpected build in inventories then crude oil could sell off and the oil stocks might follow it lower. More conservative traders might want to wait until after the report has been announced.

Picked on May 28 at $55.06
Change since picked: + 0.00
Earnings Date 05/06/08 (confirmed)
Average Daily Volume: 640 thousand

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BJ Services - BJS - close: 30.45 change: +0.75 stop: 28.95

Company Description:
BJ Services Company is a leading provider of pressure pumping, well completion, production enhancement and pipeline services to the petroleum industry. (source: company press release or website)

Why We Like It:
BJS is another oil service stock that is bouncing from its trendline of support (higher lows). We're suggesting readers buy the bounce with a tight stop under this week's low. Our initial target is the $33.00-34.00 range. The P&F chart is bullish with a $52 target.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/24/08 (unconfirmed)
Average Daily Volume: 6.9 million

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WMS Industries - WMS - close: 36.05 change: +0.95 stop: 33.99

Company Description:
WMS is engaged in serving the gaming industry worldwide by designing, manufacturing and marketing video and reel-spinning gaming machines, video lottery terminals, and through its gaming operations business, which consists of the placement of leased participation gaming machines in legal gaming venues. (source: company press release or website)

Why We Like It:
Positive analyst comments helped lift WMS to a 2.7% gain today. The stock is bouncing from its long-term trend of support (higher lows) and technical support at its 200-dma. There is potential resistance at its 50 and 100-dma overhead but we suspect that the stock could rally toward the $40.00 level. Our target is the $39.50-40.00 zone. We're suggesting long positions now but if you're patient WMS might fill the gap from this morning so you could look for a dip near $35.00 as an alternative entry point.

Picked on May 28 at $36.05
Change since picked: + 0.00
Earnings Date 08/07/08 (unconfirmed)
Average Daily Volume: 1.1 million
 

New Short Plays

None today.
 

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