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New Plays
Long Plays
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AXYS None
ESL  
GHM  

New Long Plays

Axsys Tech. - AXYS - cls: 75.82 change: +3.50 stop: 71.95

Company Description:
Axsys Technologies, Inc. is a global leader in the design and development of high-performance surveillance cameras, imaging systems and related motion control technologies, serving the aerospace, defense, and high-performance commercial markets. (source: company press release or website)

Why We Like It:
AXYS is a bullish momentum play. The stock has been out performing the market for months and has ignored the recent volatility. Today saw shares of AXYS breakout higher from a four-week consolidation pattern. We're suggesting readers buy this breakout with a stop loss at $71.95. We're setting two targets. Our first target is $79.95. Our second target is $84.00. If AXYX can trade above $76.00 it will produce a new triple-top breakout buy signal on the Point & Figure chart. FYI: The most recent data available listed short interest at 8.8% of the small 9.1 million-share float.

Picked on August 12 at $75.82
Change since picked: + 0.00
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume: 207 thousand

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Esterline Tech. - ESL - close: 52.30 chg: +0.73 stop: 49.90

Company Description:
Esterline Technologies is a specialized manufacturing company serving principally aerospace and defense markets. Approximately 80% of total revenues are generated from aerospace/defense markets. The remaining 20% is from the application of these technologies into industrial markets. Esterline management views the company's businesses in three segments related to its set of core competencies: Avionics & Controls, Sensors & Systems, and Advanced Materials. (source: company press release or website)

Why We Like It:
Shares of ESL recently broke out from a consolidation pattern near the $50.00 level and the recent rally lifted shares above technical resistance at the 200-dma. We were looking for a dip back toward $50.00 as a potential entry point but the lowest the stock got to was $50.80 and bulls powered the stock back into the green. Volume on yesterday's breakout was huge and today's volume was above average. There is potential resistance at the 100-dma near $52.75 but if the market continues higher we would expect ESL to keep climbing. We're suggesting readers buy the stock now or on a dip back toward $51.00. It will probably be a bumpy ride but we're aiming for the $57.00-60.00 zone. This is a short-term, two-week play. We do not want to hold over the August 28th earnings report. We know that our target is pretty aggressive given our time frame but the latest data put short interest at more than 9% of the small 29 million-share float. The stock could see a short squeeze ahead of earnings.

Picked on August 12 at $52.30
Change since picked: + 0.00
Earnings Date 08/28/08 (confirmed)
Average Daily Volume: 352 thousand

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Graham Corp. - GHM - cls: 106.52 chg: +4.12 stop: 99.95

Company Description:
With world-renowned engineering expertise in vacuum and heat transfer technology, Graham Corporation is a global designer, manufacturer and supplier of ejectors, pumps, condensers, vacuum systems and heat exchangers. (source: company press release or website)

Why We Like It:
It looks like shares of GHM are seeing a short squeeze in progress. This stock has an extremely small float of just 4.5 million shares. The short interest is over 10% of the float. The stock keeps climbing and it looks like shorts keep chasing it. We have to label this an aggressive play for a few reasons. First of all we normally don't play stocks priced this high on Premier Investor. Second, we normally don't like to chase a move this big (+4%) in one day. Third, chart readers could argue that GHM has built a bear wedge-like pattern. Fourth, low-volume stocks tend to be more prone to wide, volatile swings. Just look at the trading in GHM the last couple of weeks. Bulls will argue that traders keep buying the dips and GHM is showing a lot of relative strength versus the market. We're suggesting aggressive positions now with a stop loss at $99.95. If you want to try and reduce your risk you could try a stop in the $102 region. Our target is $114.50.

Picked on August 12 at $106.52
Change since picked: + 0.00
Earnings Date 10/27/08 (unconfirmed)
Average Daily Volume: 239 thousand
 

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