Editor's Note:

In addition to tonight's bullish candidate shares of CERN and ILMN both caught my eye today.

- James


NEW DIRECTIONAL CALL PLAYS

Perrigo Co. - PRGO - close: 74.00 change: +1.28

Stop Loss: 69.90
Target(s): 79.00
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
PRGO reported earnings this morning before the bell. The results were $1.05 a share on revenues of $717.5 million. That beat Wall Street's estimate of 95 cents and $709 million. PRGO's management raised their 2011 guidance. The combination of positive earnings news and a bullish market lifted PRGO to a +1.7% gain. This bounce from the $70 level looks like a bullish entry point to buy calls. I am suggesting small bullish positions now with a stop loss at $69.90. Our target is $79.00.
The Point & Figure chart for PRGO is bullish with an $85 target.

- Suggested Positions -

Buy the March $75 calls (PRGO1119C75) current ask $2.40

Annotated Chart:

Entry on February 2nd at $ xx.xx
Earnings Date 02/01/11 (confirmed)
Average Daily Volume = 915 thousand
Listed on February 1st, 2010