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Martin Marietta - MLM - cls: 141.31 chg: +3.84 stop: 134.85

Company Description:
Martin Marietta Materials is a leading producer of construction aggregates and a producer of magnesia-based chemicals and dolomitic lime. (source: company press release or website)

Why We Like It:
After two months of rest shares of MLM look ready to run again. The stock just broke out over very significant resistance near $140 ending a two-month bottoming pattern. Today's rally also produced a triple-top breakout buy signal through resistance on the Point & Figure chart. The P&F chart now points to a $170 target. Our biggest concern would be the lack of volume on the move. Volume was almost half its daily average, which does not inspire any confidence in the rally. We are cautiously optimistic here. Watch out for potential resistance at the 100-dma near $144.50. We have two targets. Our first target is the $149.00-150.00 range. Our second target is the $157.00-160.00 zone. We do not want to hold over the late October earnings report.

Suggested Options:
We are suggesting the November calls.

BUY CALL NOV 140 MLM-KH open interest= 62 current ask $9.20
BUY CALL NOV 145 MLM-KI open interest= 16 current ask $6.70
BUY CALL NOV 150 MLM-KJ open interest= 0 current ask $4.80

Picked on October 02 at $141.31
Change since picked: + 0.00
Earnings Date 10/31/07 (unconfirmed)
Average Daily Volume = 1.0 million
 

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