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Long Play Updates

Amphenol - APH - cls: 35.51 change: -0.21 stop: 34.69

Be careful. APH did not see any follow through higher after Friday's rebound. That's a warning signal for the bulls. Readers may want to wait for a rise past $35.75 or our weekend suggestion that more conservative traders wait for a rise past $36.50 before opening positions. We'll try and limit our risk with a stop loss under Friday's low. Our target is the $39.75-40.00 range.

Picked on June 10 at $35.74
Change since picked: - 0.21
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume: 1.0 million

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Aracruz Celulose - ARA - cls: 63.12 chg: +2.33 stop: 57.99

It was a big day for ARA. The stock soared 3.8% and did so on big volume. Fueling the move was a 447-point rally in the Brazilian markets, which equals about +0.8% in the Bovespa index. Don't be surprised if ARA sees some profit taking tomorrow. Our target is the $68.00-70.00 range.

Picked on June 03 at $62.00
Change since picked: + 1.12
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume: 355 thousand

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CIT Group - CIT - close: 59.18 change: -0.32 stop: 58.49

We don't see any change in shares of CIT nor do we see any changes from our weekend comments. We are going to stick to our plan and wait for a breakout above resistance. Our suggested trigger to buy CIT is at $61.75. If triggered our target is the $67.00-70.00 range. Currently the Point & Figure chart forecasts an $84 target. More conservative traders may want to exit near $65.00, which could be round-number resistance.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume: 1.3 million

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EMC Corp. - EMC - close: 16.63 change: -0.07 stop: 15.99

It looks like EMC tried to bounce but couldn't make it past the 10-dma. That's bearish for the stock and we would now expect another dip toward the $16.50 zone. More conservative traders may want to tighten their stops. Our target is the $18.50-20.00 range.

Picked on May 27 at $16.46
Change since picked: + 0.17
Earnings Date 07/17/07 (unconfirmed)
Average Daily Volume: 26.6 million

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Fomento Economico - FMX - cls: 39.10 chg: +0.25 stop: 37.99

Mexican stocks were also higher on Monday but we're a little disappointed that FMX didn't keep up more with the Mexican market's 1.1% move. More conservative traders may want to exit or tighten their stops. We're not suggesting new positions at this time but a move over $40 would be encouraging. Our target is the $44.00-45.00 range.

Picked on June 03 at $40.44
Change since picked: - 1.34
Earnings Date 07/28/07 (unconfirmed)
Average Daily Volume: 1.5 million

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Kansas City Southern - KSU - cls: 40.66 chg: -0.18 stop: 39.61

KSU didn't move much on Monday although it does look like today's trading has produced a failed rally at the 10-dma, which is bearish. More conservative traders may want to tighten their stops toward $40.00. Our target is the $43.50-44.00 range.

Picked on May 17 at $39.61
Change since picked: + 1.05
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume: 716 thousand

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McGrath RentCorp. - MGRC - cls: 31.85 chg: -0.15 stop: 30.95

There is no change from our weekend comments on MGRC. We suspect the stock is poised for a breakout. We are suggesting a trigger to buy the stock at $32.31, which would be a new 52-week high. If triggered our target is the $36.00-37.50 range. The P&F chart is bullish with a $50.00 target. FYI: It's worth noting that MGRC only has a 23.4 million-share float and short interest is close to 7.5% of the float. A breakout to new highs could spark some short covering!

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/30/07 (unconfirmed)
Average Daily Volume: 92 thousand

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Micron Tech. - MU - cls: 11.99 change: -0.36 stop: 11.85

Ouch! MU almost completely reversed Friday's gains with a 2.9% loss on Monday. This is definitely bearish and we're not suggesting new positions at this time. More conservative traders may want to exit now if they opened positions this morning. The lack of follow through higher after Friday's big bounce is bad news.

Picked on June 10 at $12.35
Change since picked: - 0.36
Earnings Date 06/27/07 (unconfirmed)
Average Daily Volume: 27.9 million

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Raytheon - RTN - close: 55.87 chg: -0.77 stop: 53.95

Shares of RTN were slipping on Monday, down 1.3%, after a report came out that RTN's vehicle protection system was technically "immature" and needed significant development. Shares now appear to have produced a short-term top. More conservative traders may want to exit early. We're expecting a pull back toward support near $55.00. More conservative traders might want to consider a tighter stop closer to the $55.00 level. Our target is the $59.75-60.00 range.

Picked on June 03 at $56.17
Change since picked: - 0.30
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume: 2.3 million

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St. Mary Land - SM - cls: 37.67 chg: +0.36 stop: 36.95

A rebound in crude oil contributed to a decent bounce in SM on Monday. However, the rally pared its gains after hitting the $38 level. We're optimistic but the move today almost looks bearish. Be careful about opening new positions here. Our target is the $43.50-44.00 range.

Picked on June 04 at $38.51
Change since picked: - 0.84
Earnings Date 08/02/07 (unconfirmed)
Average Daily Volume: 539 thousand

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Encore Wire Corp. - WIRE - cls: 29.62 chg: +0.23 stop: 27.95

WIRE displayed some relative strength but the rally failed again at the $30.00 level. More conservative traders might want to tighten their stops toward Friday's lows near $28.70 (or maybe $28.50). We would wait for a new breakout over $30.00 or over $30.45 before considering new positions. The Point & Figure chart suggests a $46 price target. We are targeting the $32.50-33.00 range.

Picked on May 27 at $29.26
Change since picked: + 0.36
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume: 383 thousand
 

Short Play Updates

Flamel Tech. - FLML - cls: 25.00 change: +0.75 stop: 26.05

FLML produced a strong oversold bounce on Monday and closed up 3% but still off its best levels of the day. Wait for a new decline under $25.00 before considering new positions. Volume was pretty strong today, which should make bearish traders cautious. Our target is the $21.00-20.00 range. The P&F chart points to an $18 target but does show potential support near $23.00.

Picked on June 10 at $24.25
Change since picked: + 0.75
Earnings Date 08/06/07 (unconfirmed)
Average Daily Volume: 456 thousand

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Staples Inc. - SPLS - cls: 24.40 chg: -0.16 stop: 25.76

SPLS failed near Friday's high. The lack of follow through on Friday's big bullish reversal is good news for the bears. This could be used as a new entry point for shorts or you could wait for a new relative low before opening positions.

Picked on May 27 at $24.40
Change since picked: + 0.00
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume: 7.0 million

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U S T Inc. - UST - close: 54.35 chg: +2.87 stop: 55.11

Ouch! Bears panicked on Monday after UBS upgraded shares of UST to a "buy" this morning. The stock spiked higher at the open and closed up 5.5% on big volume. This is bad news and while the stock is still under resistance at the $55.00 level more conservative traders may want to exit early. This is too bad. UST had been one of our relative weakness leaders to the downside. UST has already hit our target in the $52.60-52.50 range. Now we're aiming for the $50.50-50.00 zone.

Picked on May 23 at $54.96
Change since picked: - 0.61
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume: 965 thousand
 

Closed Long Plays

Pinnacle Enter. - PNK - cls: 28.98 chg: -0.52 stop: 29.95

We are dropping PNK as a bullish candidate. The stock continues to show relative weakness. Shares lost 1.7% and broke down under its 50-dma today. We had been waiting for a breakout over resistance near $31.00 with a trigger at $31.35 that hasn't been hit yet.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/07/07 (unconfirmed)
Average Daily Volume: 685 thousand
 

Closed Short Plays

None
 

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