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ABC None
NTES

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AmerisourceBergen - ABC - close: 65.57 change: +1.01 stop: 63.85

Company Description:
AmerisourceBergen is one of the largest pharmaceutical services companies in the United States. Servicing both pharmaceutical manufacturers and healthcare providers in the pharmaceutical supply channel, the Company provides drug distribution and related services designed to reduce costs and improve patient outcomes. AmerisourceBergen's service solutions range from pharmacy automation, bedside medication safety systems, and pharmaceutical packaging to pharmacy services for skilled nursing and assisted living facilities, reimbursement and pharmaceutical consulting services, and physician education. With more than $49 billion in operating revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs more than 14,000 people. (source: company press release)

Why We Like It:
The trend is your friend and until it changes we'll play along. The trend in ABC over the last couple of months has definitely been a bullish one and now after a three-week consolidation the stock is bouncing from support. The bounce has also sent ABC above resistance at its three-week trendline of lower highs. We also like the Point & Figure chart, which shows a triple-top breakout buy signal with a $93 target. We'd probably label this a momentum play. We'll suggest new positions here over the $65.00 level but more conservative types may want to wait for ABC to produce a new relative high over $66.70 before considering new positions. Our short-term target is the $69.50-70.00 range but it would not surprise us to see ABC push past the $70 level. The recent consolidation looks like a bull flag pattern, which would point to a move above $70.00. In the news ABC said it will present at the Goldman Sachs conference on June 15th. We do not plan to hold the play over ABC's July earnings report.

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 60.00 ABC-HL OI=1400 current ask $7.10
BUY CALL AUG 65.00 ABC-HM OI=1036 current ask $3.50
BUY CALL AUG 70.00 ABC-HN OI=1044 current ask $1.25

Picked on June 13 at $ 65.57
Change since picked: + 0.00
Earnings Date 07/21/05 (unconfirmed)
Average Daily Volume = 1.3 million 

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Netease.com - NTES - close: 57.29 chg: +2.18 stop: 53.95

Company Description:
NetEase.com, Inc. is a leading China-based Internet technology company that pioneered the development of applications, services and other technologies for the Internet in China. Our online communities and personalized premium services have established a large and stable user base for the NetEase Web sites, which are operated by our affiliate. Our average daily page views for the month ended March 31, 2005 exceeded 439 million. (source: company press release)

Why We Like It:
The sideways consolidation in the Dow and the S&P 500 over the last few weeks could be labeled as boring. We decided to spice things up a bit and offer an aggressive play on an old favorite for the momentum crowd. NTES is a Chinese Internet stock that is breaking out over resistance to hit new one-year highs. The P&F chart confirms the bullish trajectory with a $65.00 target. We're willing to go long at current levels and target a move into the $62-63 range. An alternative entry would be to wait for a possible decline back toward the $56 or $55 level and buy a bounce. 

Suggested Options:
We are suggesting the July calls.

BUY CALL JUL 50.00 NQG-GJ OI= 927 current ask $7.60
BUY CALL JUL 55.00 NQG-GK OI=2736 current ask $3.60
BUY CALL JUL 60.00 NQG-GL OI=2114 current ask $1.15

Picked on June 13 at $ 57.29
Change since picked: + 0.00
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume = 752 thousand 

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