NEW BULLISH Plays

Boyd Gaming - BYD - close 49.48 change -0.57 stop 46.60

Company Description:
Boyd Gaming Corporation (Boyd Gaming) is a multi-jurisdictional gaming company. As of December 31, 2009, the Company's wholly owned and operated 15 casino entertainment facilities located in Nevada, Mississippi, Illinois, Louisiana and Indiana. In addition, it owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, a travel agency, and a captive insurance company that underwrites travel-related insurance. As of December 31, 2009, it owned an aggregate of approximately 812,500 square feet of casino space, containing approximately 21,400 slot machines, 425 table games and 7,550 hotel rooms. On January 22, 2009, it opened hotel at Blue Chip Casino, Hotel & Spa.

Target(s): 8.95, 9.20, 9.50
Key Support/Resistance Areas: 9.60, 9.25, 8.75, 8.00, 7.40
Time Frame: 1 to 2 weeks

Why We Like It:
August Casino revenue was up +11.5% y/y in Las Vegas which bodes well for other regions following. BYD operates in Las Vegas and other parts of the country. The stock broke out on Friday on huge volume and I believe it is will head towards $9.00 in the next week or two. I would like to see some retracement and use $8.10 (prior resistance area from mid-August) as a trigger to enter long positions. Our first two targets are +10% and 13.5% higher than the trigger.

Suggested Position: Long BYD stock if it trades to $8.10

Annotated chart:

Entry on October xx
Earnings 10/27/10 (unconfirmed)
Average Daily Volume: 1.8 million
Listed on October 9, 2010


Thompson Creek Metals - TC - close 11.28 change +0.53 stop 10.45

Target(s): 11.75, 12.40
Key Support/Resistance Areas: 12.60, 11.80, 11.00, 10.55
Time Frame: 1 to 3 weeks

Company Description:
Thompson Creek Metals Company Inc. (Thompson Creek) is a molybdenum mining company with vertically integrated mining, milling, processing and marketing operations in Canada and the United States. The Company's operations include the Thompson Creek producing open-pit molybdenum mine and concentrator (the Thompson Creek Mine) in Idaho, the Langeloth metallurgical facility (the Langeloth Facility) in Pennsylvania and a 75% joint venture interest in the Endako producing open-pit molybdenum mine, concentrator and roaster (the Endako Mine) in British Columbia. In addition, the Corporation has two underground molybdenum exploration projects comprised of an option to acquire up to 75% of the Mount Emmons molybdenum property (Mount Emmons Project), located in Colorado, and the Davidson molybdenum property (Davidson Project), located in British Columbia.

Why We Like it:
It seems there is no stopping the basic materials sector as the lackluster employment report is sure to be followed by additional stimulus. Molybdenum is high strength metal and is used to make aircraft parts, electrical contacts, industrial motors and filaments to name a few. Technically, TC broke through resistance near $11.00 and touched its 200-day SMA on Friday. I would like to see the stock retrace some of those gains and suggest we enter long positions with a trigger of $11.10 which is -18 cents lower than Friday's close. Our targets are about +6% and +11.5% higher than our trigger.

Suggested Position: Long TC stock if it trades $11.10

Options Traders: Buy November $11.00 CALL, current ask $1.00

Annotated chart:

Entry on October XX
Earnings 10/4/2010 (unconfirmed)
Average Daily Volume: 1.7 million
Listed on October 9, 2010