Option Investor
New Plays
Click here to email James
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
KSU None

New Long Plays

Kansas City South - KSU - close: 51.41 change: +1.14 stop: 49.45

Company Description:
Headquartered in Kansas City, Mo., Kansas City Southern is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company. (source: company press release or website)

Why We Like It:
I hesitate to add new plays with the market moving so sharply on extremely low volume. Moves like this are not to be trusted. Keep that in mind as you contemplate this candidate. The railroad stocks have been showing strength and the DJUSRR index is not that far away from a new high. Shares of KSU could try and catch up to its peers. Traders bought the dip a few days ago near its rising 40-dma and its 50% retracement of the July rally. Today's gain is a bullish breakout over the four-week trend of lower highs. We are suggesting bullish positions now or on a dip back towards $50.00. We're listing this play with a stop loss at $49.45. More conservative traders could place their stop closer to $50.00 while aggressive traders could place theirs under $49.00. Our target is the $54.90-56.00 range. FYI: The P&F chart is still bearish from the August correction. Calendar note: KSU is due to present at an investor conference on September 4th.

Picked on August 28 at $51.41
Change since picked: + 0.00
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume: 1.4 million
 

New Short Plays

None today.
 

Premier Investor New Play Archives