NEW BULLISH Plays

Jos. A. Bank Clothiers - JOSB - close: 50.30 change: +0.28

Stop Loss: 48.75
Target(s): 55.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The stock market's rally stalled last week. Shares of JOSB didn't notice. This apparel company continues to climb and Friday saw a bullish breakout over technical resistance at its 100-dma and 200-dma. Further gains could spark a short squeeze.

The most recent data listed short interest at 19.8% of the 27.5 million-share float. I am suggesting we open bullish positions at $50.75 with a stop loss at $48.75, just under Friday's low. Our target is $55.00.

Trigger @ $50.75

Suggested Position: buy JOSB stock @ trigger

- or -

buy the Mar $50 call (JOSB1217C50) current ask $2.15

Annotated chart:

Entry on February xx at $ xx.xx
Earnings Date 03/29/12 (unconfirmed)
Average Daily Volume = 301 thousand
Listed on February 11, 2011


Yahoo! Inc. - YHOO - close: 16.14 change: +0.14

Stop Loss: 15.35
Target(s): 18.75
Current Gain/Loss: unopened
Time Frame: 6 to 12 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Now with executive Jerry Yang out of the picture there is growing speculation that YHOO could be acquired. Many analyst estimate that any future sell price is probably in the $19-23 area. Of course it could be weeks or months before any M&A deal is announced. In the meantime the action in YHOO looks bullish. Shares were showing relative strength on Friday and look ready to breakout past its trend of lower highs.

I am suggesting we open small bullish positions if YHOO trades at $16.35. We do not want to open positions if YHOO were to gap open above $16.50. If triggered at $16.35 we'll use a stop under at $15.35 since the $15.40 level has been support the last few weeks. Our multi-week (possibly multi-month) target is $18.75.

Trigger @ $16.35

Suggested Position: buy YHOO stock @ trigger

- or -

buy the Apr $17 call (YHOO1221D17) current ask $0.55

Annotated chart:

Entry on February xx at $ xx.xx
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 17.2 million
Listed on February 11, 2011