New Watch List Entries
LNN - Lindsay Corp.
MEE - Massey Energy Corp.
Active Watch List Candidates
BEAV - BE Aerospace Inc.
Intl. Game Technology
MICC - Millicom Intl. Cellular
Walter Energy Inc.
Dropped Watch List Entries
CELG - We are dropping CELG as a watch list candidate. The stock gapped higher last week on news of a positive drug trial. If the stock ever bounces from the $48 level again it might be a buy.
RAI - hit our trigger at $42.50 on Friday morning and graduated to the play list.
New Watch List Candidates:
LNN $37.70 +1.49 -- Lindsay Corp.
This farm-equipment stock is clearly building a bottom. You can see the inverse head-and-shoulders pattern over the last eight weeks. The Point & Figure chart is bullish and points to a $55.00 target. I'd prefer to buy a dip with the market overbought but I'm also listing a breakout trigger. If we are triggered we'll want to sell half near $50.00 and then the rest near $60.00.
Lindsay manufactures and markets irrigation equipment primarily used in agricultural markets which increase or stabilize crop production while conserving water, energy, and labor. The Company also manufactures and markets infrastructure and road safety products through its wholly owned subsidiaries, Barrier Systems Inc. and Snoline S.P.A. At June 30, 2009, Lindsay had approximately 12.3 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.
(source: company press release or website)
Buy-the-Dip trigger: $33.50 or Breakout trigger: $41.55
BUY the 2010 January $35.00 calls (NRR-AG)
BUY the 2010 January $40.00 calls (NRR-AH)
FYI: Readers might want to consider buying the 2010 March calls instead.
Chart of LNN:
MEE $23.74 +0.65 -- Massey Energy Corp.
Coal stocks enjoyed a very strong rally during the last two weeks. I suspect that when MEE reports earnings this week the stock could see some profit taking. MEE reports on July 28th after the market's closing bell. Wall Street expects a profit of 16-cents a share. I am suggesting that readers buy LEAPS on a dip in the $20.50-18.00 zone. We'll use a stop at $15.75. Our long-term target is the $35.00-40.00 range. The P&F chart agrees and points to a $37.50 target.
Massey Energy Company, headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia, is the fourth largest coal company in the United States based on produced coal revenue and is a part of the Standard & Poor's 500 Index.
(source: company press release or website)
Buy-the-Dip trigger: $20.50
BUY the 2010 January $25.00 call (MEE-AE)
BUY the 2011 January $30.00 call (VHK-AF)
Chart of MEE:
Active Watch List Candidates:
BEAV $15.04 +0.18 -- BE Aerospace Inc.
The rally in BEAV stalled last week near the $15.00 level. Investors are probably waiting for the company's earnings report that comes out this week. BEAV should report before the opening bell on July 28th. The market's trend has change to a more bullish stance so I'm upping our trigger. We want to buy LEAPS or the stock on a dip in the $12.50-12.00 zone.
Buy-the-Dip trigger: $12.50
BUY the 2010 January $15.00 calls (symbol: BQV-AC)
BUY the stock at $12.50
Note: At $12.50 you could just buy the stock instead but the $15 calls will allow you more leverage on your investment.
Chart of BEAV:
IGT $19.74 -0.02 --- Intl. Game Technology
IGT spiked higher last week on better than expected earnings news. Shares are now testing resistance at $20.00. I'm turning more aggressive with our entry point. We want to buy LEAPS on a dip at $17.50. More conservative traders could try and hold out for a dip near $16.00. Our long-term target is the $25.00-30.00 zone.
Buy-the-Dip trigger: $17.50
BUY the 2010 January $17.50 call (IGT-AW) -or-
BUY the 2010 January $20.00 call (IGT-AD) -or-
BUY the 2011 January $20.00 call (VGG-AD)
Chart of IGT:
MICC $72.98 -2.86 -- Millicom Intl. Cellular
Whoa! It looks like we missed the boat on MICC. The company reported earnings last week and the news was better than expected. Combine that with a global market rally and shares soared past the $75 level. Our buy the dip trigger is way too low. I'm adjusting our entry point to buy LEAPS to $62.50. It could take a few weeks before MICC even comes close to pulling back that far but we certainly don't want to chase this move now.
Buy-the-Dip trigger: $62.50
BUY the 2010 January $80 call (symbol: CQD-AP)
Chart of MICC:
WLT $48.70 +1.48 -- Walter Energy Inc.
Energy stocks were a big part of the market's strength. WLT has rallied to new highs for the year. We are turning more aggressive with our buy-the-dip entry point. Broken resistance near $40.00 should be new support. I'm suggesting we buy LEAPS in the $41.00-40.00 zone. We'll use a stop loss at $34.40.
Our long-term target is $60.00.
Buy-the-Dip trigger: $41.00
BUY the 2010 January 50.00 call (WLT-AJ)
BUY the 2011 January 50.00 call (OZE-AJ)
Chart of WLT: