Editor's Note:

In addition to tonight's new candidates, consider these stocks as possible trading ideas and watch list candidates:

(bullish candidates) ONNN, BLL, R, RAH, CREE, SIRO, ADP, PCAR, PAYX, INTC, UNH, F, AMP


NEW BULLISH Plays

Sturm, Ruger & Co. - RGR - close: 43.82 change: +1.14

Stop Loss: 41.75
Target(s): 48.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
About four weeks ago RGR was seeing a lot of volatility as investors reacted to its earnings news. Since then the stock has managed to consolidate sideways helping alleviate its overbought condition. Now RGR is starting to move higher with a trend of higher lows again. If this rally continues it could be accelerated by short covering. The most recent data listed short interest at 10% of RGR's very small 17.4 million-share float.

I am suggesting a trigger to open bullish positions in RGR at $44.05. We will use a stop loss at $41.75. Our multi-week target is $48.50 but that means RGR has to get past its recent all-time high at $46.68. FYI: The Point & Figure chart for RGR is bullish with a $52.00 target.

Trigger @ 44.05

Suggested Position: buy RGR stock @ (trigger)

- or -

buy the Apr $45 call (RGR1221D45) current ask $1.40

Annotated chart:

Entry on March xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 319 thousand
Listed on March 15, 2011


Stamps.com Inc. - STMP - close: 27.98 change: +1.27

Stop Loss: 25.95
Target(s): 32.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this Internet-based postage company are on the rebound again. The stock is currently trading inside a wide $23-33 trading range. This month the stock surged on March 8th after announcing it had resolved a patent infringement lawsuit. Now after a three-day consolidation lower STMP is on the rebound again.

Aggressive traders may want to buy STMP now. I am suggesting a trigger to open positions at $28.25. More conservative traders may want to wait for STMP to rally past its 50-dma near $28.58 before considering new positions. If the rally does continue we could see STMP accelerate due to short covering. The most recent data listed short interest at almost 16% of the very small 13.2 million share float.

If we are triggered at $28.25 we'll use a stop loss under Wednesday's low. Our target is $32.50. This is a volatile stock. I am suggesting we keep our position size small to limit our risk.

Trigger @ $28.25 (small positions)

Suggested Position: buy STMP stock @ (trigger)

- or -

buy the Apr $30 call (STMP1221D30) current ask $0.90

Annotated chart:

Entry on March xx at $ xx.xx
Earnings Date 04/30/12 (unconfirmed)
Average Daily Volume = 508 thousand
Listed on March 15, 2011