Option Investor
Play Updates

Stocks Underperformed on Monday

HAVING TROUBLE PRINTING?
Printer friendly version


BULLISH Play Updates

Hansen Natural - HANS - close: 32.08 change: -0.85 stop: 29.75 *new*

Monday turned out to be a volatile session for HANS with an early morning spike down to $30.85. The stock quickly recovered but eventually settled with a 2.5% loss. We remain bullish on HANS after last week's breakout higher but we're not suggesting new positions unless HANS provides another bounce near support. Please note that we're inching up the stop loss to $29.75.

We have two targets. Our first target is $34.90. We are going to list a secondary target at $37.50 but strongly suggest readers take most of their money off the table at $34.90. The Point & Figure chart looks very bullish (see below) with a $45 target.

Picked on December 16 at $30.25 *triggered       
Change since picked:     + 1.83   			
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       1.8 million     


Hasbro Inc. - HAS - close: 28.81 change: -0.36 stop: 27.49

Toymaker HAS experienced s sharp spike lower this morning. Traders bought the dip at $28.40 and the stock spent most of the day inside a 20-cent range. We don't see any changes from our weekend comments. We have two targets. Our short-term target is $29.90. Our secondary target is $32.25. FYI: A move over $30.00 would produce a brand new P&F chart buy signal.

Picked on December 06 at $28.31 /gap higher entry
Change since picked:     + 0.50 /originally listed at $27.84
Earnings Date          02/09/09 (unconfirmed)    
Average Daily Volume:       2.6 million     


Henry Schein - HSIC - close: 35.30 change: +0.49 stop: 33.95

HSIC out performed the market with a 1.4% gain on Monday. The stock continues to bounce around the $35-36 zone. The late afternoon rebound off its intraday lows looks like another entry point to buy the stock. More conservative traders may want to wait for a move over $36.00 to initiate positions. Our target is $39.00.

Picked on December 18 at $35.21 
Change since picked:     + 0.09   			
Earnings Date          02/25/09 (unconfirmed)    
Average Daily Volume:       1.2 million     


QUALCOMM - QCOM - close: 34.81 change: -0.22 stop: 33.75

QCOM spent the day drifting toward its lows near the 40-dma and retesting the $33.80 region. The very late day bounce is another opportunity to get long the stock. I don't see any changes from our weekend comments.

Our first target is $37.45. Our second target is $39.75. Expect some resistance at $40.00. The Point & Figure chart is bullish with a $49 target.

Picked on December 20 at $35.03 
Change since picked:     - 0.22   			
Earnings Date          01/28/09 (unconfirmed)    
Average Daily Volume:        22 million     


RadioShack - RSH - close: 11.92 change: +0.21 stop: 10.99 *new*

It was a volatile day for the retailers. The RLX lost 3.8%. Shares of RSH plunged toward the $11.00 level this morning but quickly bounced. The stock out performed its peers and the S&P 500 with a 1.7% gain. We are adjusting our stop loss to $10.99. RSH has already hit our first target. Our second target is $13.75.

Picked on December 13 at $11.15 
Change since picked:     + 0.56   			
Earnings Date          02/12/09 (unconfirmed)    
Average Daily Volume:       4.3 million     


Shaw Group Inc. - SGR - close: 19.11 change: -1.78 stop: 17.95

Uh-oh! SGR has wiped out our unrealized gains with a bearish 8.5% drop and a breakdown back under $20.00 and back under its 10-dma. More conservative traders may want to cut their losses early right here. We are not suggesting new bullish positions at this time.

We have two targets. Our first target is $24.00. Our secondary target is $27.00 but we suggest readers take off most of their positions at $24.00.

Picked on December 16 at $19.54 /gap down entry
Change since picked:     - 0.43 /originally listed at $19.74
Earnings Date          01/07/09 (unconfirmed)    
Average Daily Volume:       3.6 million     


Student Loan Corp. - STU - close: 36.27 change: -4.47 stop: 34.95

Whoa! STU has completely reversed on us. The stock erased Friday's big gain with a 10.9% collapse on Monday. Shares actually rallied to $41.90 this morning and then plunged to the $35.00 level for a 16% decline from its intraday highs. Volume was strong on the session in spite of the calendar. The stock managed to hold support at $35.00 but the move today is very negative. Readers may want to abandon ship right here and cut their losses early. We're not suggesting new positions at this time. This was a higher-risk play and it's proving to be just that - high risk.

Our first target is $44.85. Our second target is $49.50. Our third target is $54.50. The Point & Figure chart just produced a brand new triple-top breakout buy signal with a $57 target.

Picked on December 20 at $40.74 
Change since picked:     - 4.47   			
Earnings Date          01/12/09 (unconfirmed)    
Average Daily Volume:        44 thousand    


Total System Services - TSS - close: 13.78 change: -0.32 stop: 13.49

More aggressive traders may want to buy this dip in TSS and use a stop loss under the 20-dma. We are going to stick to our plan, which is to wait for a breakout higher. We're suggesting a trigger to buy the stock at $14.40. More conservative traders may want to use a trigger above $14.50 instead.

We're listing two targets. Our first target is $15.95. Our second target is $17.45.

Picked on December xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          01/22/09 (unconfirmed)    
Average Daily Volume:       1.1 million   


BEARISH Play Updates

*We currently do not have any bearish play updates*


CLOSED BULLISH PLAYS

Greif Inc. - GEF - close: 31.28 change: -1.24 stop: 31.25

GEF slipped toward support and didn't bounce until shares neared the $30.50 region. The stock has broken its minor trend of higher lows and broken down under its 10-dma. GEF hit our stop loss at $31.25 closing the play. It still looks like a bullish double bottom with the low in November and December so we would keep GEF on your watch list for another opportunity.

chart:
GEF

Picked on December 16 at $34.24 
Change since picked:     - 1.72  /stopped out 31.25
Earnings Date          02/26/09 (unconfirmed)    
Average Daily Volume:       464 thousand    


Harsco - HSC - close: 24.81 change: -1.91 stop: 24.85

Ouch! It proved to be a painful day for HSC. The stock produced a bearish engulfing candlestick pattern and lost more than 7% with a plunge toward the $24.00 level. The stock hit our stop loss at $24.85 closing the play.

chart:
HSC

Picked on December 20 at $26.72 
Change since picked:     - 1.91 /stopped out 24.85
Earnings Date          01/29/09 (unconfirmed)    
Average Daily Volume:       826 thousand    


Lam Research - LRCX - close: 21.43 change: -0.63 stop: 20.95

J.P.Morgan downgraded LRCX to a "neutral" this morning and shares of LRCX fell under the $21.00 mark hitting our stop loss at $20.95 and closing the play. We would keep LRCX on your watch list for a dip to and bounce from round-number support near $20.00 as a potential entry point to buy the stock again.

chart:
LRCX

Picked on December 15 at $22.25 *triggered       
Change since picked:     - 0.82 /stopped out @ 20.95
Earnings Date          01/21/09 (unconfirmed)    
Average Daily Volume:       3.1 million     


N.Amer.Palladium - PAL - close: 1.36 change: -0.27 stop: 1.45

In spite of more analyst commentary about how bullish investors should be on metal and metal stocks shares of PAL were hammered lower on Monday. The stock lost more than 16% and hit our stop loss at $1.45. It does look like PAL found a bottom this past fall and I would keep an eye on it for a bounce from the $1.20 or $1.00 levels as another entry point to speculate on a rapid move higher.

chart:
PAL

Picked on December 13 at $ 1.67 /gap open entry /stopped @ 1.45
Change since picked:     - 0.31 /originally listed at $1.54
Earnings Date          11/08/08 (confirmed)    
Average Daily Volume:       593 thousand    


Premier Investor Play Update Archives