NEW BULLISH Plays
Rino International - RINO - close 12.38 change +0.84 stop 10.50
RINO International Corporation is engaged in the business of designing, manufacturing, installing and servicing wastewater treatment and flue gas desulphurization equipment for use in China's iron and steel industry, and anti-oxidation products and equipment designed for use in the manufacture of hot rolled steel plate products. The Company has three principal products and product lines: the Lamella Inclined Tube Settler Waste Water Treatment System, the Circulating, Fluidized Bed, Flue Gas Desulphurization System and the High Temperature Anti-Oxidation System for Hot Rolled Steel. The Company's sole business activities are acting as a holding company of its direct and indirect subsidiaries, Innomind Group Limited, RINO Investment (Dalian) Co., Ltd. (RINO Investment), Dalian RINO Heavy Industries Co., Ltd. (RINO Heavy Industries) and Dalian Innomind Environment Engineering Co., Ltd. (Dalian Innomind).
Target(s): 14.50, 15.95, 16.90
Key Support Areas: 11.75, 11.50, 11.20
Key Resistance Areas: 12.75, 13.75
Time Frame: Several weeks
Why We Like It:
RINO has taken out to the woodshed recently and I believe it due for a turnaround. The appears to have found support in the $10.75 area which dates back to prior support in August 2009 and prior resistance in June of 2008. The stock bounced nicely off of this yesterday and followed through nicely today gaining +7.28% In addition, the stock trades at a ridiculously low PE ratio of about 5. I think there is a lot of room to for this stock to run and I suggest readers take advantage of the building momentum. I'm going to place an initial wide stop at $10.50 which is below the key support level, but it will be adjusted as the trade develops. I think we can make $2 in this trade but there could be some volatility so please use proper position to manage risk.
Suggested Position: Long RINO stock at current levels
Suggested Position: Buy July $12.50 CALL, current ask $1.45
Annotated Weekly Chart:
Entry on May xx
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 926,000
Listed on 5/25/10, 2010
NEW BEARISH Plays
Perrigo Company - PRGO - close 58.10 change +2.06 stop 62.55
Perrigo Company is a global healthcare supplier that develops, manufactures and distributes over-the-counter and prescription pharmaceuticals, nutritional products, active pharmaceutical ingredients, and pharmaceutical and medical diagnostic products. The Company operates in three segments: Consumer Healthcare, Rx Pharmaceuticals and API. The Company has other category that consists of the Israel Pharmaceutical and Diagnostic Products. The Company operates through wholly owned subsidiaries. In the United States, its operations are conducted through L. Perrigo Company, Perrigo Company of South Carolina, Inc., Perrigo New York, Inc., Perrigo Holland, Inc. and Perrigo Florida, Inc. Outside the United States, its operations are conducted through Perrigo Israel Pharmaceuticals Ltd., Chemagis Ltd., Quimica y Farmacia S.A. de C.V., Laboratorios Diba, S.A., Wrafton Laboratories Limited, Brunel Pharma Limited and Galpharm Healthcare Ltd.
Target(s): 54.30, 53.10, 51.80
Key Support Areas: 56.80, 56.00, 54.25
Key Resistance Areas: 59.50, 60.50
Time Frame: 1 to 2 weeks
Why We Like It:
There is no doubt PRGO has been a strong performer as of late but I think the stock has seen its best days, at least for the time being. PRGO printed a reversal bar today which was near its 50-day SMA from below. It also appears the stock may be trying to put in a lower high. PRGO is below its 20 and 50-day SMA which should act as good resistance. I am looking for PRGO to retest its recent lows near $54.30 about -6.50% lower from it current price levels. I suggest we take advantage of the volatility in this stock and initiate short positions.
Suggested Position: Short PRGO stock at current levels or if it trades up to $58.90.
Entry on May xx
Earnings More than 2 months (unconfirmed)
Average Daily Volume: 1.3 million
Listed on May 22, 2010