Editor's Note:
I'm filling in for Scott tonight.

-James


NEW BULLISH Plays

Companhia Brasileira de Distribuicao - CBD - cls: 76.39 chg: -0.46 stop: see below

Target(s): 39.00
Key Support/Resistance Areas: 35.00, 36.50, 39.00
Current Gain/Loss: +0.00%
Time Frame: 4 to 6 weeks
New Positions: Yes, see entry point below

Company Description:
With gross revenue of R$ 26.2 billion in 2009 and a market share of 14.8%, Companhia Brasileira de Distribuição is the largest retailer in Brazil. The Company operates 1,080 stores in 18 states and in Distrito Federal, with more than 1.7 million square meters sales area, near 88 thousand employees and 18 distribution centers. Its business is based on a multiformat structure, with a balance between supermarkets, hypermarkets, stores of eletronic products/ household appliances, convenience stores, cash-and-carry segment and e-commerce operations, allowing a wide range of consumers’ needs and expectations in different regions and diverse social and economic classes: neighborhood supermarkets for class levels A and B (Pão de Açúcar), supermarkets for class levels C, D and E (CompreBem, Extra Supermercado and Sendas), hypermarkets (Extra), electronic and home appliance stores (Ponto Frio and Extra-Eletro), cash-and-carry (Assai), and convenience stores (Extra Fácil), gas station and drugstores. (source: company press release or website)

Why We Like It:
Shares of Brazilian grocery food chain CBD appear to be in breakout mode. The Brazilian economy continues to grow and the surging middle class likes to spend. This has pushed CBD toward all-time highs. Now normally I wouldn't list a stock in the $70s as a PremierInvestor play. However, CBD will see a 2-for-1 split on Monday morning (Oct. 18th). The stock should open around $38.20. I am suggesting we look to buy CBD on a pull back. Broken resistance near $73.50 (post-split will be $36.75) should be new support. Thus, use a trigger at $36.75 to open bullish positions. We'll use a stop loss at $34.75 since the $70 level (post-split: $35) should be additional support.

If triggered our first target is $39.00 (pre-split $78.00). Our second, longer-term target is $42.00. The inverse (bullish version) head-and-shoulders pattern would suggest a bullish target of $88 (post-split would be $44). The Point & Figure chart is very bullish with a price target of $101.00 (post-split $50.50).

Suggested Position: Buy the stock (CBD) at $36.75, stop loss 34.75.

CBD does have options but the symbols will change post-split so look them up on Monday.

Annotated chart:

Entry on October xx at $xx.xx
Earnings Date 11/10/10 (unconfirmed)
Average Daily Volume: 545 thousand
Listed on October 16th, 2010


Hansen Natural Corp. - HANS - close: 50.16 change: -0.57 stop: 44.95

Target(s): 50.00, 52.50,
Key Support/Resistance Areas: 45.00, 47.50, 50.00, etc.
Current Gain/Loss: +0.00%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below for details

Company Description:
Based in Corona, California, Hansen Natural Corporation markets and distributes Hansen's(R) natural sodas, sparkling beverages, apple juice and juice blends, fruit juice smoothies, multi-vitamin juice drinks in aseptic packaging, iced teas, energy drinks, Junior Juice(R) juices and water beverages, Blue Sky(R) brand beverages, Monster Energy(R) brand energy drinks, Nitrous(TM) Monster Energy(R) brand energy drinks, Monster Hitman(TM) energy shooters, Java Monster(TM) brand non-carbonated coffee + energy drinks, X-Presso Monster(TM) brand non-carbonated espresso energy drinks, Peace Tea(TM) iced teas, Lost(R) Energy(TM) brand energy drinks, Rumba(R), Samba and Tango brand energy juices, Vidration(TM) brand vitamin enhanced waters and Admiral(TM) iced teas (source: company press release or website)

Why We Like It:
HANS is probably best known for their Monster brand energy drinks. The stock has been a monster in its own right and shares have been a popular momentum trade over the years. Well once again shares of HANS are surging higher. We'd like to hop on board but we don't want to chase it at these levels. I'm suggesting a trigger to buy the stock (or call options) at $48.25 since broken resistance at $48.00 should be new support. I'm suggesting a stop loss at $44.95 but we may want to raise the stop closer to the rising 50-dma (technical support) currently near 46.20.

If triggered at $48.25 our first target is $51.00. Our second target is $52.50. FYI: The point & figure chart is very bullish and is forecasting a long-term target of $78.

Suggested Position: BUY the stock at $48.25

- or -

BUY the November $50.00 calls (on a dip at $48.25).

Annotated chart:

Entry on October xx at $xx.xx
Earnings Date 11/04/10 (unconfirmed)
Average Daily Volume: 4.5 million
Listed on October xxth, 2010


Mylan Inc. - MYL - close: 19.31 change: +0.37 stop: 18.45

Target(s): 20.00, 21.00, 22.00
Key Support/Resistance Areas: 18.50, 19.00, 20.00, 20.50,
Current Gain/Loss: +0.00%
Time Frame: 4 to 6 weeks
New Positions: Yes

Company Description:
Mylan Inc. ranks among the leading generic and specialty pharmaceutical companies in the world and provides products to customers in more than 140 countries and territories. The company maintains one of the industry's broadest and highest quality product portfolios supported by a robust product pipeline; operates one of the world's largest active pharmaceutical ingredient manufacturers; and runs a specialty business focused on respiratory, allergy and psychiatric therapies (source: company press release or website)

Why We Like It:
MYL is a short squeeze candidate. Bigger picture the generic drug makers are facing a potential boom for the next few years as more brand name drugs lose their patent protection. On a short-term basis MYL just broke out over heavy resistance at $19.00 and its 200-dma following news the FDA has approved to generic versions of Merck's Hyzaar and Cozaar blood pressure drugs. Now don't get too excited here since TEVA has already begun selling generic versions of these drugs months ago but it does mean MYL can try and grab its slice of the pie. Technically MYL is seeing a bullish breakout and could see a short squeeze. The most recent data available listed short interest at almost 29% of the 260 million-share float.

I do consider this an aggressive trade so keep your positions somewhat smaller. Buy the stock now (or the calls) and target a move to $20.00, $21 and beyond. FYI: The P&F chart is forecasting at $33 target.

Suggested Position: Buy MYL stock now at current levels

- or -

BUY the November $20.00 calls (current ask $0.36)

Annotated chart:

Entry on October 18 at $xx.xx
Earnings Date 10/28/10 (unconfirmed)
Average Daily Volume: 4.5 million
Listed on October 16th, 2010