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Long Play Updates

Adaptec - ADPT - close: 3.32 change: +0.14 stop: 3.09 *new*

Thursday proved to be a strong day for ADPT. The stock rallied 4.4% and broke through its 200-dma again. Shares closed above the $3.30 level, which we had been suggesting as an alternative entry point for more momentum-minded players. Volume was above average on the rally, which is good. We are adjusting our stop loss up to $3.09. Our target is the December 2007 highs. We'll try to exit in the $3.65-3.70 zone. The stock can be somewhat volatile so we do consider this a higher-risk play. Our time frame is several weeks. FYI: The most recent data listed short interest at more than 7% of the 118 million-share float. Based on ADPT's average daily volume that is a lot of short interest and the stock could see a short squeeze.

Picked on May 28 at $ 3.25
Change since picked: + 0.07
Earnings Date 05/08/08 (confirmed)
Average Daily Volume: 559 thousand

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Axsys Tech. - AXYS - close: 62.60 change: +0.92 stop: 57.39

AXYS added about 1.3% and rallied to another new high. If the market continues to rise then AXYS has a chance of hitting our target tomorrow. We're not suggesting new positions at this time. Our target is the top of the channel in the 64.00-65.00 range.

Picked on June 01 at $59.16
Change since picked: + 3.44
Earnings Date 07/24/08 (unconfirmed)
Average Daily Volume: 124 thousand

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BJ Services - BJS - close: 31.81 change: +1.62 stop: 29.39 *new*

A massive rally in oil ignited a fire in the oil service stocks. BJS rose more than 5%. We are adjusting our stop loss to $29.39. Our initial target is the $33.00-34.00 range. The P&F chart is bullish with a $52 target.

Picked on May 28 at $30.45
Change since picked: + 1.36
Earnings Date 07/24/08 (unconfirmed)
Average Daily Volume: 6.9 million

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AM Castle & Co - CAS - close: 32.93 change: +1.37 stop: 30.95*new*

CAS is bouncing with the market. The stock added more than 4%. This looks like a new entry point to buy the stock although we reiterate our previous suggestion that more conservative traders may want to wait for a rise over $32.00 or $32.50 first. Please note we're adjusting our stop loss to $30.95. Our target is the $36.50-37.00 zone, which is just under its all-time highs.

Picked on June 01 at $32.83
Change since picked: + 0.10
Earnings Date 07/31/08 (unconfirmed)
Average Daily Volume: 138 thousand

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Mercury General - MCY - close: 52.64 change: +0.77 stop: 49.99*new*

The rally in MCY continues. The stock added another 1.4% today. We don't see any real changes from our previous comments. We are going to inch up our stop loss to $49.99. Our short-term target is the $54.00-55.00 zone. The P&F chart is a lot more bullish with a $68 target.

Picked on May 28 at $50.92 *triggered/gap higher entry
Change since picked: + 1.72
Earnings Date 05/05/08 (confirmed)
Average Daily Volume: 264 thousand

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Sonoco Products - SON - close: 34.60 change: +0.32 stop: 32.99

SON did post a 0.9% gain but the trading almost looks bearish. We would be cautious on this stock for the time being. Our target is the $38.00 level. The P&F chart points to a $51 target.

Picked on June 01 at $34.62
Change since picked: - 0.02
Earnings Date 07/30/08 (unconfirmed)
Average Daily Volume: 430 thousand

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United States Cellular - USM - cls: 64.50 chg: +0.85 stop: 59.95

USM continues to dial up gains. The stock added another 1.3% albeit on below average volume. We don't see any real changes from our previous comments. Our target is the recent highs in the $67.00-67.50 zone. More aggressive traders could aim for $70 or its 200-ema. The P&F chart is bullish with an $85 target.

Picked on June 01 at $62.63
Change since picked: + 1.87
Earnings Date 08/07/08 (unconfirmed)
Average Daily Volume: 129 thousand

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Williams Cos. - WMB - close: 39.37 change: +1.23 stop: 37.25

The widespread rally finally gave WMB the green light. Shares surged 3.2%. This looks like another entry point for bullish positions. Or if you prefer look for a dip back in the $38.80-38.50 zone as an entry point. Our target is the $42.00-42.50 zone. More aggressive traders may want to aim higher. The Point & Figure chart points to $56.

Picked on May 22 at $38.40
Change since picked: + 0.97
Earnings Date 07/31/08 (unconfirmed)
Average Daily Volume: 6.7 million

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WMS Industries - WMS - close: 38.03 change: +0.56 stop: 34.25

Investors are still buying dips in WMS and the stock looks like it may try to really breakout past the $38.00 level soon. We're not suggesting new bullish positions at this time. However, more aggressive traders may want to hold on to a small position to see if WMS can rally past its four-month trendline of lower highs. Please note that we're adjusting our exit target to $39.00-40.00.

Picked on May 28 at $36.05
Change since picked: + 1.98
Earnings Date 08/07/08 (unconfirmed)
Average Daily Volume: 1.1 million

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Wal-Mart - WMT - close: 59.80 change: +2.12 stop: 56.49 *new*

Target exceeded! Better than expected same-store sales figures for May lifted WMT to a 3.68% gain and a new multi-year high. Our first target was the $59.00 level. We're not suggesting new positions at this time but a bounce from $58.00 might qualify as an entry point. Our new stop loss is $56.49. The Point & Figure chart points to a $68 target. We have a second, more aggressive target at $62.00.

Picked on May 22 at $56.05 /target exceeded
Change since picked: + 3.75
Earnings Date 08/14/08 (unconfirmed)
Average Daily Volume: 19.1 million
 

Short Play Updates

McDonald's - MCD - close: 58.05 change: +0.45 stop: 60.01

MCD continues to under perform the market. Shares bounced but failed to break their trend of lower highs. Our target is the $56.40-56.00 zone. The 200-dma near $56.30 might act as technical support. We are contemplating a secondary, more aggressive target but at this time we would exit completely near the 200-dma. Currently the P&F chart is still bullish.

Picked on June 01 at $59.32
Change since picked: - 1.27
Earnings Date 07/30/08 (unconfirmed)
Average Daily Volume: 6.6 million

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Paychex Inc. - PAYX - close: 34.00 change: +0.39 stop: 35.55

It's hard not to bounce when the entire market is rising. PAYX added just over 1% but failed to breakout past its 10 or 100-dma. Our target is the $31.00-30.00 zone. FYI: The most recent data listed short interest at 5% of the 320 million-share float. That's several days worth of short interest.

Picked on May 22 at $34.87
Change since picked: - 0.87
Earnings Date 06/25/08 (unconfirmed)
Average Daily Volume: 2.4 million

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Patterson Cos. - PDCO - close: 34.11 change: +0.06 stop: 34.51

We were pleasantly surprised to see PDCO under performing the market today. The stock spent the day trading sideways. Look for a new move under $33.70 or $33.50 as an entry point for shorts. Our target is the $30.50-30.00 zone. The P&F chart is bearish with a $28 target. FYI: The most recent data listed short interest at about 11% of the 98 million-share float. That is a relatively high degree of short interest for this stock.

Picked on June 03 at $33.42
Change since picked: + 0.69
Earnings Date 08/21/08 (unconfirmed)
Average Daily Volume: 1.6 million
 

Closed Long Plays

Copa Holdings - CPA - close: 34.35 change: +1.30 stop: 31.40

Target achieved. The airline stocks rallied in spite of a huge surge in crude oil. Shares of CPA hit $34.90 intraday. Our target was the $34.50-35.00 zone. More aggressive traders may want to aim for $36.00 or its 200-dma.

Picked on May 27 at $31.40 /target achieved 34.50
Change since picked: + 2.95
Earnings Date 05/08/08 (confirmed)
Average Daily Volume: 589 thousand
 

Closed Short Plays

None
 

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