NEW BULLISH Plays

North American Palladium - PAL - close: 1.64 change: -0.03

Stop Loss: 1.35
Target(s): 2.45
Current Gain/Loss: unopened

Entry on January xx at $ xx.xx
Listed on January 12, 2012
Time Frame: 8 to 9 weeks
Average Daily Volume = 2.8 million
New Positions: Yes, see below

Company Description

Why We Like It:
PAL is a mining company that produces platinum, gold, nickel, and copper but it's main product is palladium. The stock has suffered an ugly two years with a drop from almost $8.00 down to less than $1.20. Yet now there are forecasts for a palladium shortage in 2013, which should be a blessing for PAL. The stock has already started to rebound.

We are suggesting new bullish positions now. However, you may want to slowly scale into positions, a little now, a little next week. Obviously we expect the rally to continue but PAL might pullback to test its 10-dma again before moving higher. That would provide a better entry point on a dip near $1.50. Our multi-week target is in the $2.40-2.50 area.

Suggested Position: buy PAL stock @ (the open)

Annotated chart:



Scotts Miracle-Gro Co. - SMG - close: 46.25 change: +0.13

Stop Loss: 45.45
Target(s): 49.85
Current Gain/Loss: unopened

Entry on January xx at $ xx.xx
Listed on January 12, 2012
Time Frame: Exit prior to earnings on Feb. 5th
Average Daily Volume = 281 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
It may be the dead of winter but spring will be here sooner than you know it. Wall Street is always looking ahead. Shares of SMG have been showing strength and broke through significant resistance at the $45.00 level this month. The last few days have seen SMG consolidate sideways as it builds up steam for the next burst higher. The catalyst could be SMG's upcoming annual shareholder meeting scheduled for 9:00 a.m. on January 17th.

I am suggesting a trigger to open bullish positions at $46.50. If triggered our target is $49.85. We do not want to hold over the earnings report on Feb. 5th. FYI: The Point & Figure chart for SMG is bullish with a $59 target.

Trigger @ 46.50

Suggested Position: buy SMG stock @ (trigger)

Annotated chart:



Sonic Corp. - SONC - close: 11.05 change: +0.23

Stop Loss: 10.45
Target(s): 12.75
Current Gain/Loss: unopened

Entry on January xx at $ xx.xx
Listed on January 12, 2012
Time Frame: 8 to 9 weeks
Average Daily Volume = 658 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of fast-food chain SONC have been churning sideways in the $9.00-11.00 range for almost six months. Now it looks like the stock is finally poised to breakout of this trading range. The early January intraday high was $11.12. I am suggesting a trigger to open bullish positions at $11.15. If triggered our multi-week target is $12.75. We may have to be patient to give SONC time to get that far. FYI: The Point & Figure chart for SONC is bullish with a $15.50 target.

Trigger @ 11.15

Suggested Position: buy SONC stock @ (trigger)

Annotated chart: