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FMX None None

New Calls

Femsa Fomento - FMX - close: 69.85 chg: +1.62 stop: 67.75

Company Description:
FEMSA is the leading beverage company in Latin America. It controls an integrated beverage platform that comprises the largest Coca-Cola bottler in the region, Coca-Cola FEMSA; the second largest brewer in Mexico and important beer exporter to the United States, FEMSA Cerveza; and Oxxo, the largest and fastest growing convenience store chain in Mexico with over 3,600 stores. (source: company press release or website)

Why We Like It:
If the rally in the U.S. market has stalled it isn't affecting the rally in Mexican stocks, which are hitting new highs. FMX isn't near its highs but the stock just broke out over its three-month trendline of lower highs. Today's move higher was also fueled by above average volume. We also like how FMX's daily chart shows a new MACD buy signal. We do see some resistance near the November highs around $70.50 so we're going to suggest a trigger at $70.65 to open the play. If we are triggered we'll target a run into the $74.75-75.00 range. The P&F chart points to an $81 target.

Suggested Options:
We are suggesting the January calls. The following is a quick reference of calls we would consider.

BUY CALL JAN 65 FMX-AM open interest= 10 current ask $5.80
BUY CALL JAN 70 FMX-AN open interest=136 current ask $2.50
BUY CALL JAN 75 FMX-AO open interest= 97 current ask $0.75

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/23/06 (unconfirmed)
Average Daily Volume = 308 thousand

New Puts

None Today.

New Strangles

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