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Allegheny Tech - ATI - cls: 113.45 chg: +1.68 stop: 108.45

Company Description:
Allegheny Technologies Incorporated is one of the largest and most diversified specialty metals producers in the world with revenues of $5.3 billion during the most recent four quarters ending March 31, 2007. ATI has approximately 9,500 full-time employees world-wide who use innovative technologies to offer growing global markets a wide range of specialty metals solutions. (source: company press release or website)

Why We Like It:
Believe it or not but we almost added ATI as a call candidate last night. News or rumors of more consolidation in the metals sector lifted the whole group today. ATI is rebounding from a recent test of the $105 level and today's rally is a breakout over some moving averages. This looks like an entry point to buy calls and aim for the April highs. We're suggesting call positions with ATI above $110. It's up to you if you want to buy calls now or wait for a potential dip back towards the $111-110 zone. Our target will be the $119.00-120.00 range. FYI: The Point & Figure chart forecasts a $122 target.

Suggested Options:
We are suggesting the June calls. Please note that normally a June $110 call would have a -FB suffix and a June $120 call would have a -FD suffix. The CBOE is listing -FX and -FY respectively. Double-check your symbols with your broker.

BUY CALL JUN 110 ATI-FX open interest=1194 current ask $7.90
BUY CALL JUN 115 ATI-FC open interest=2110 current ask $5.20
BUY CALL JUN 120 ATI-FY open interest= 746 current ask $3.20

Picked on May 08 at $113.45
Change since picked: + 0.00
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 2.4 million
 

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