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Play Updates

In Play Updates and Reviews

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Long Play Updates

Burlington Coat - BCF - close: 38.00 chg: -0.33 stop: 36.45

The action in the major market averages today is starting to worry us. The market looks poised to turn lower again (at least short-term) and in that environment we would not be starting new bullish plays. BCF dipped to technical support at its 50-dma today. The bad news is that the bounce wasn't very strong. We are not suggesting new plays at the moment and more conservative traders will want to keep a close eye on their stops! Our eight week target is the $43.50-44.00 range.

Picked on October 24 at $38.90
Change since picked: - 0.90
Earnings Date 10/06/05 (confirmed)
Average Daily Volume: 165 thousand

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HR Block - HRB - close: 24.24 change: +0.22 stop: 22.99

The move over $24.25 today looks like a new bullish entry point. However, we are growing more concerned over the major averages. We would not initiate new bullish positions in HRB unless the major averages were positive. Our target for HRB is the simple 200-dma near $25.80. Our time frame is just less than four weeks. We plan to exit ahead of the company's earnings report.

Picked on October 23 at $24.09
Change since picked: + 0.15
Earnings Date 11/17/05 (confirmed)
Average Daily Volume: 2.1 million

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Network Appl. - NTAP - close: 25.74 chg: -0.35 stop: 24.49

Heads up! The short-term bullish rally in NTAP has failed. The stock lost 1.3% and broken down under its 10-dma and 100-dma. We would expect shares of NTAP to retest support at the $25.00 level. We are not suggesting new plays at this time. Readers can watch for a bounce from $25 as a new bullish entry point but enter cautiously.

Picked on October 16 at $25.12
Change since picked: + 0.62
Earnings Date 11/16/05 (unconfirmed)
Average Daily Volume: 5.9 million

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Outback Stkhse - OSI - close: 36.75 chg: -0.50 stop: 34.99

Yesterday we said that if the major averages turned lower we'd expect OSI to test the $36.75 region. That is exactly what has happened. It didn't help the restaurants today that PFCB missed its earnings estimates and guided lower. The bad news is that the major averages don't look healthy. If the DJIA and S&P 500 continue lower we'd expect OSI to dip back toward the $36 region. Readers can watch for a bounce from $36.00 as a new bullish entry point.

Picked on October 23 at $37.21
Change since picked: - 0.46
Earnings Date 10/20/05 (confirmed)
Average Daily Volume: 819 thousand
 

Short Play Updates

Elkcorp - ELK - close: 31.25 chg: -0.58 stop: 32.75

ELK continues to consolidate sideways between $31 and $33 but the short-term trend looks bearish. We are suggesting a trigger to short the stock at $30.49. More conservative traders may want to wait for a decline under $30.00 before initiating positions. Our target will be the $27.00 level.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/21/05 (confirmed)
Average Daily Volume: 205 thousand

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Sanderson Farms - SAFM - close: 33.97 chg: -0.34 stop: 37.51

Worries over avian flu continue to haunt shares of SAFM and the stock lost another percent today. Our target is the $32.00-31.00 range.

Picked on October 23 at $35.17
Change since picked: - 1.20
Earnings Date 12/07/05 (unconfirmed)
Average Daily Volume: 257 thousand
 

Closed Long Plays

None
 

Closed Short Plays

None
 

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