Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Long Play Updates

AllState - ALL - close: 65.86 change: +0.10 stop: 63.49

ALL posted another new all-time high on Wednesday. We remain bullish on the stock but if you're looking for a new entry point consider waiting for a dip back towards the $65.00 level. Broken resistance near $65 should act as new support. Our target is the $69.00-70.00 range.

Picked on December 15 at $65.25
Change since picked: + 0.61
Earnings Date 01/31/07 (unconfirmed)
Average Daily Volume: 2.4 million

---

ONEOK Inc. - OKE - close: 43.30 change: +0.11 stop: 42.25

OKE is still trying to bounce but we remain somewhat skeptical given the afternoon slide lower today. Overall the longer-term trend is bullish but OKE might need to retest the $43.00 or $42.50 region again before launching higher. More conservative traders may want to exit early or tighten their stops. Our target is the $45.00-46.00 range.

Picked on November 28 at $42.25
Change since picked: + 1.05
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume: 547 thousand

---

Raytheon - RTN - close: 53.86 change: +0.31 stop: 49.85

RTN produced a strong day closing at another new record high. Shares got a boost after one analyst firm raised their price target from $52 to $60 this morning. More conservative traders may want to tighten their stops. A good place to consider stops is short-term support near $52.00. Our target is the $54.50-55.00 range.

Picked on November 29 at $51.05
Change since picked: + 2.81
Earnings Date 01/25/07 (unconfirmed)
Average Daily Volume: 1.5 million

---

St.Paul Travelers - STA - cls: 53.84 change: -0.05 stop: 51.95

We do not see any big changes from our last update on STA. It looks like STA might be poised to dip back toward the $53.00 region. We would watch for a dip (and/or a bounce) near $53.50 or $53.00 as a new entry point to go long the stock. Broken resistance at $53 should offer new support. Our target is the $57.50 level. The P&F chart is bullish with a $76 target.

Picked on December 17 at $53.56
Change since picked: + 0.28
Earnings Date 02/01/07 (unconfirmed)
Average Daily Volume: 2.5 million
 

Short Play Updates

Cheesecake Factory - CAKE - cls: 24.85 chg: -0.30 stop: 27.01

Shares of CAKE continue to spoil. The stock lost 1.19% on above average volume after an analyst firm downgraded the stock to a "sell" this morning. We don't see any changes from our previous updates. More conservative traders might want to consider tightening their stops toward $26.50 or even the $26.00 region. Our target is the $22.25-22.00 range. We do expect some support near $24.00 but given the bearish technicals on the weekly chart we think any bounce at $24 would be temporary. The P&F chart currently points to a $4.00 target. FYI: The most recent (November) data puts short interest at 11.8% of CAKE's 73.7 million-share float. That is relatively high short interest and could raise the risk of a short-squeeze if CAKE manages to rally.

Picked on December 18 at $25.65
Change since picked: - 0.80
Earnings Date 11/30/06 (confirmed)
Average Daily Volume: 1.3 million

---

Colonial Prop. - CLP - close: 46.39 change: +0.29 stop: 48.26

CLP produced an oversold bounce on Wednesday closing up 0.6%. Watch for a failed rally near $47.00 or its 10-dma (also near $47) as a new entry point for shorts. The stock looks bearish given the various breakdowns and the head-and-shoulders pattern. Our target is the May 2006 lows but we will plan to exit at $42.75. We do not want to hold over the late January earnings. FYI: Traders should know that in the past few months CLP has been noted as a potential takeover/acquisition target in the real estate sector. If a deal is announced it could be very painful for shorts but we haven't heard anything further on the subject. Meanwhile short interest is about 3% of the 43.4 million-share float.

Picked on December 17 at $46.71
Change since picked: - 0.32
Earnings Date 01/30/07 (confirmed)
Average Daily Volume: 217 thousand

---

New Century - NEW - close: 34.24 change: +0.26 stop: 36.01

The bounce in NEW struggled to make it past the stock's descending 10-dma, which is the first level of technical resistance. We hesitate to open new positions at this time but keep an eye out for a failed rally under $35.50 as a potential entry point. Our target is the $31.00-30.00 range. FYI: The most recent (November) data put short interest at 22% of the company's 50 million-share float. That is a very high degree of short interest and it does raise the risk of a short squeeze if NEW reverses sharply higher.

Picked on December 10 at $34.47
Change since picked: - 0.49
Earnings Date 02/01/07 (unconfirmed)
Average Daily Volume: 1.4 million

---

21st Century - TCHC - close: 22.57 change: -0.77 stop: 25.26*new*

The sell-off in shares of TCHC is picking up speed. The stock lost another 3.29% and on above average volume and closed at a new two-month low. We're adjusting the stop loss to $25.26. Our target is the $21.50-20.00 range. The most recent (November) data puts short interest at over 6% of TCHC's 6.4% float. That's a very small float so 6% might be enough short interest to really increase the risk of a short squeeze should TCHC reverse higher.

Picked on December 10 at $24.84
Change since picked: - 2.27
Earnings Date 11/01/06 (confirmed)
Average Daily Volume: 115 thousand

---

World Accpt. - WRLD - close: 45.99 change: -0.12 stop: 47.75

WRLD produced another failed rally near the $47.00 level today. This is the fifth failed rally in the last six days. Traders can use this as another entry point for shorts. More conservative traders may want to wait for a decline under 44.50 (near the 100-dma) before opening positions. Our target is the $40.50-40.00 range. FYI: It is important for investors to note that the latest (November) data puts short interest at almost 15% of WRLD's 17.1 million-share float. That is a high degree of short interest and definitely raises the risk of a short squeeze if the stock suddenly turns higher.

Picked on December 18 at $45.81
Change since picked: + 0.18
Earnings Date 01/23/07 (unconfirmed)
Average Daily Volume: 285 thousand
 

Closed Long Plays

None
 

Closed Short Plays

NTL Inc. - NTLI - close: 25.40 change: +0.53 stop: 26.01

We are suggesting an early exit in our NTLI short. The stock out performed the broader market on Wednesday with a 2.1% gain. Furthermore today's rally pushed NTLI above its short-term bearish trendline of lower highs.

Picked on December 10 at $24.44
Change since picked: + 0.96
Earnings Date 11/07/06 (confirmed)
Average Daily Volume: 3.1 million
 

Premier Investor Play Update Archives