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Long Play Updates

Burlington Coat - BCF - close: 37.01 chg: -0.99 stop: 36.45

The action in the markets today and in shares of BCF does not bode well for the future. The RLX retail index produced a sharp 2.48% decline and is trading just above support near 420. Meanwhile shares of BCF lost 2.6% and closed under all its major moving averages. Short-term bulls may want to start inching toward the exit door right now. If BCF breaks down under the $37 level it's a good bet we'll be taken out at $36.45. Therefore more conservative traders may want to raise their stops or just exit early.

Picked on October 24 at $38.90
Change since picked: - 1.89
Earnings Date 10/06/05 (confirmed)
Average Daily Volume: 165 thousand


HR Block - HRB - close: 24.03 change: -0.21 stop: 22.99

HRB did a decent job of resisting the market's weakness today. Yet if the markets continue to slide lower we would expect HRB to follow. We are not suggesting new plays at this time.

Picked on October 23 at $24.09
Change since picked: - 0.06
Earnings Date 11/17/05 (confirmed)
Average Daily Volume: 2.1 million


Network Appl. - NTAP - close: 25.55 chg: -0.19 stop: 24.49

Wow! We are surprised the damage in NTAP wasn't worse. The NASDAQ lost 1.7% and the NWX networking index lost over 3%. We would still look for NTAP to pull back toward the $25.00-25.25 region and would not consider new bullish positions until we saw a bounce.

Picked on October 16 at $25.12
Change since picked: + 0.43
Earnings Date 11/16/05 (unconfirmed)
Average Daily Volume: 5.9 million


Outback Stkhse - OSI - close: 36.25 chg: -0.50 stop: 34.99

OSI tried to rally this morning but the weakness across the market was too much for it. We would not suggest new plays at this time. Wait and watch for a bounce from the $36.00 level as a potential bullish entry point.

Picked on October 23 at $37.21
Change since picked: - 0.96
Earnings Date 10/20/05 (confirmed)
Average Daily Volume: 819 thousand

Short Play Updates

Educ. Mgmt. Corp. - EDMC - close: 29.74 chg: +0.01 stop: 31.05

Hmm... we admit that the action in shares of EDMC is unusual. Given the big drop in the market we would have expected the stock to follow suit and hit new lows. We see this as a major caution flag for the bears. If EDMC doesn't produce some downward momentum shortly we're going to bail out early!

Picked on October 26 at $29.73
Change since picked: + 0.01
Earnings Date 11/08/05 (confirmed)
Average Daily Volume: 493 thousand


Elkcorp - ELK - close: 30.41 chg: -0.84 stop: 32.75

We have been triggered! ELK started the day off weak and continued to slip lower as the major averages sank deeper into the session. Our trigger was $30.49. More conservative traders may want to wait for a drop under the $30.00 level before initiating positions. Our target for ELK is the $27.00 level.

Picked on October 27 at $30.49
Change since picked: - 0.08
Earnings Date 10/21/05 (confirmed)
Average Daily Volume: 205 thousand


Netflix - NFLX - close: 25.90 change: +0.92 stop: 25.01

That loud eruption of hisses and boos was the bear camp after another analyst upgraded shares of NFLX to a "buy" this morning. The upgrade fueled the 3.6% bounce from the $25 level and kept the stock firmly inside its rising channel. This remains a very speculative play and the lack of follow through lower on Wednesday's decline is not a good sign. We're going to watch NFLX for another day, maybe two. Today's trading action produced an "inside day" so we'll see what direction NFLX heads next. Our trigger to short this already highly shorted stock is at $23.74.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/16/05 (unconfirmed)
Average Daily Volume: 1.6 million


Sanderson Farms - SAFM - close: 32.96 chg: -1.01 stop: 36.11*new*

SAFM lost another three percent today and is nearing our target in the $32.00-31.00 range. We are not suggesting new plays. We are lowering our stop loss to $36.11.

Picked on October 23 at $35.17
Change since picked: - 2.21
Earnings Date 12/07/05 (unconfirmed)
Average Daily Volume: 257 thousand

Closed Long Plays

None Today.

Closed Short Plays

None Today.

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