NEW BULLISH Plays
Gaylord Entertainment Co. - GET - close 29.43 change -0.12 stop 32.65
Gaylord Entertainment is engaged in the business of hospitality. The Company's operations are organized into three principal business segments: Hospitality, which includes its hotel operations; Opry and Attractions, which includes its Grand Ole Opry assets, its Corporate Magic event planning business, WSM-AM and Nashville attractions, and Corporate and Other, which includes corporate expenses. The Company's Hospitality segment represented approximately 92.6% of total revenues for the year ended December 31, 2009.
Target(s): 29.95, 30.80, 31.75
Key Support/Resistance Areas: 30.00, 29.00, 28.25
Time Frame: 1 to 2 weeks
Why We Like It:
GET has formed a high tight bull flag just over $29.00 over the past two weeks which is just above a key pivot level (between $28.25 to $29.00) for the stock dating back to April (see rectangle). I believe the stock is on the verge of breaking out of the bull flag to the upside and it has some room to run. Aggressive traders can consider positions at current levels or on weakness but more conservative traders may want to use $30.20 as a trigger to enter long positions. Officially, we are going to use $28.85 or $30.20 as triggers to enter, whichever occurs first. Our initial stop is $27.90 which is below the increasing 20-day SMA which the stock has not touched since 7/12. If we get filled at the lower trigger of $28.85 our targets are approximately +4%, +7%, and +10% higher from the entry.
Suggested Position: Long GET stock if it trades to $28.85 or $30.20, whichever occurs first.
Options Traders: September $30.00 CALL, current ask $1.45, estimated ask at lower entry $1.20
Entry on August xx
Earnings 11/3/2010 (unconfirmed)
Average Daily Volume: 630,000
Listed on August 9, 2010