NEW BULLISH Plays

Broadridge Financial Solutions - BR - close 21.32 change -0.28 stop 20.36

Company Description:
Broadridge Financial Solutions, Inc. (Broadridge) is a provider of technology-based solutions to the financial services industry. The Company operates in three business segments: Investor Communication Solutions, Securities Processing Solutions, and Clearing and Outsourcing Solutions. Broadridge serves the clients in the financial services industry, including retail and institutional brokerage firms, global banks, mutual funds, annuity companies, institutional investors, specialty trading firms, and clearing firms. The Company also provide services to the corporate issuers. During the fiscal year ended June 30, 2009 (fiscal 2009), the Company distributed over one billion investor communications, including proxy materials, investor account statements, trade confirmations, tax statements and prospectuses; processed an average of over 1.6 million equity trades, and served over 100 correspondents through its securities clearing services. (source: company press release or website)

Target(s): 22.40, 22.75
Key Support Areas: 21.00, 20.65
Key Resistance Areas: 22.00, 22.45, 23.00
Time Frame: Several weeks

Why We Like It:
BR has pulled back right into an upward trend line from October 2, 2009 and I believe the stock is poised to bounce from here. The stock also has strong horizontal support just above $21.00 and again at $20.75 and $20.50. Our stop will be below these levels at $20.36. From a fundamental perspective BR trades at a low 13.3 PE ratio and I believe this stock would benefit from financial reform due to the record keeping and technology services they specialize in. I believe the overall market could bounce from here as well which will help long positions. Our time frame several weeks and our target $22.40.

Suggested Position: Long BR Stock at current levels.

Annotated Chart:

Entry on May xx
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 1.2 million
Listed on 5/15/10, 2010


AMR Corp. - AMR - close 7.31 change +0.15 stop 6.60

Company Description:
AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company’s principal subsidiary is American Airlines, Inc. (American). As of December 31, 2009, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc. (Executive) (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). (source: company press release or website)

Target(s): 7.95, 8.25, 8.65
Key Support Areas: 7.00, 6.85
Key Resistance Areas: 8.00, 8.30, 8.70
Time Frame: Several weeks

Why We Like It:
Prices of AMR stock are coiling from a period of higher lows and lower highs dating back to October 2008. The stock is sitting on an upward trend line dating back to March 2009 and appears to be headed to the longer term downtrend line which is up towards $9.00. The stock also just broke out above a shorter term downtrend line that started with the highs on April 26th and has turned down to retest the backside of that trend line (see oval on chart). AMR also made a double bottom at about $7.00 from 5/12 and today and bounced nicely. There is also strong support $6.85 which provides a great reference point to place a stop just below at $6.60. I am looking for AMR to rally up to $7.95 which is our first target and about +9% from current levels. Our second and third targets are $8.25 and $8.65 respectively.

Suggested Position: Long AMR stock at current levels.

Annotated Weekly Chart:

Entry on May xx
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 19 million
Listed on 5/15/10, 2010