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CLB None None
MMM    

New Calls

Core Labs - CLB - close: 124.89 chg: +3.07 stop: 117.45

Company Description:
Core Laboratories N.V. is a leading provider of proprietary and patented reservoir description, production enhancement, and reservoir management services used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. (source: company press release or website)

Why We Like It:
CLB, an oil services stock, displayed some relative strength today. Shares hit an intraday high of $127.80 before paring its gains and closing up 2.5%. Volume was a little bit better than average on the move. We like CLB because the stock appears to have broken out from a short-term bearish channel or bull flag pattern in addition to breaking through resistance at its 100-dma. The MACD has turned positive and the P&F chart is very bullish with a $160 target. We don't want to chase CLB right here. Instead we're suggesting readers buy calls on a dip into the $121.00-120.00 zone. Broken resistance near $120 should be new support. If triggered our target is the $129.00-130.00 range. More aggressive traders could aim higher but we do not want to hold over earnings.

Suggested Options:
Our suggested trigger to buy calls is $121.00. We are suggesting the May calls but plan to exit before April earnings.

BUY CALL MAY 120 CLB-ED open interest= 21 current ask $9.90
BUY CALL MAY 125 CLB-EE open interest= 48 current ask $7.10
BUY CALL MAY 130 CLB-EF open interest= 22 current ask $4.60

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/23/08 (unconfirmed)
Average Daily Volume = 240 thousand

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3M Co. - MMM - close: 80.91 chg: -0.41 stop: 78.45

Company Description:
A recognized leader in research and development, 3M produces thousands of innovative products for dozens of diverse markets. 3Ms core strength is applying its more than 40 distinct technology platforms often in combination to a wide array of customer needs. With $24 billion in sales, 3M employs 75,000 people worldwide and has operations in more than 60 countries. (source: company press release or website)

Why We Like It:
MMM broke through the top of its bearish channel a couple of weeks ago but has since spent the time consolidating sideways under resistance near $81.50. This week's recent rally over $80.00 and its 100-dma suggests the stock may be poised for a more significant leg higher. The P&F chart is already bullish and points to an $85 target. We want to catch a breakout so we're suggesting readers buy calls at $81.75. If triggered there is potential resistance near $85 and its 200-dma but our target is the $87.00-87.50 zone. We will try and limit our risk with a stop loss at $78.45 but there is stronger support near $78 and more aggressive traders may want to use a wider stop under $77.85. We do not want to hold over the late April earnings report.

Suggested Options:
Our suggested trigger is $81.75. . We are suggesting the May calls but plan to exit before April earnings.

BUY CALL MAY 80.00 MMM-EP open interest=1947 current ask $3.50
BUY CALL MAY 85.00 MMM-EQ open interest=2787 current ask $1.30

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume = 3.9 million
 

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