New Watch List Entries

FSLR - First Solar Inc.

Active Watch List Candidates

CHKP - Check Point Software

Dropped Watch List Entries

AKAM graduated to our active play list.

New Watch List Candidates:

First Solar, Inc. - FSLR - close: 70.87

Company Info

FSLR was founded in Arizona back in 1999. Since then the company has grown into a global leader for photovoltaic (PV) solar energy solutions. They have installed more than eight gigawatts (GW) of solar energy around the world.

The acceptance and application of solar energy around the world is growing. FSLR is trying to capitalize on that trend. The company recently announced they're expanding into India.

It has been a bumpy ride for FSLR investors this year with big swings up and down. That's probably thanks to the volatile nature of FSLR's earnings reports. The company has announced some pretty big hits and misses this year. In spite of all the volatility shares of FSLR are up +29.7% in 2014 and they look poised to breakout to new multi-year highs soon.

A rally past $74.00 would generate a new buy signal on the point & figure chart. It could also spark some short covering since the most recent data listed short interest at 12% of the 73.3 million share float.

I am suggesting we wait for FSLR to close above $75.00 and then buy calls the next morning with a stop loss at $69.40. Our long-term target is the $95-100 zone.

Breakout trigger: Wait for FSLR to close above $75.00
Then buy calls the next morning with a stop at $69.40

BUY the 2016 Jan $80 call (FSLR160115C80) current ask $11.30

Option Format: symbol-year-month-day-call-strike

Chart of FSLR:

Originally listed on the Watch List: 09/21/14

Active Watch List Candidates:

Checkpoint Software Tech. - CHKP - close: 70.40

09/21/14: Broken resistance near $70.00 should be support and that's where traders bought the dip in CHKP last week. The current two-week pullback might just be a bull-flag consolidation. However, we are on the sidelines and waiting for a close above $72.50.

Earlier Comments: September 14, 2014:
CHKP is another technology stock and it is similar to AKAM in that both have beaten earnings estimates every quarter this year and both are trading near 14-year highs. While AKAM facilitates Internet traffic, CHKP seeks to guard its clients against Internet hazards.

The company describes itself as, "the worldwide leader in securing the Internet, provides customers with uncompromised protection against all types of threats, reduces security complexity and lowers total cost of ownership. Check Point first pioneered the industry with FireWall-1 and its patented stateful inspection technology."

"Today, Check Point continues to develop new innovations based on the Software Blade Architecture, providing customers with flexible and simple solutions that can be fully customized to meet the exact security needs of any organization. Check Point is the only vendor to go beyond technology and define security as a business process. Check Point 3D Security uniquely combines policy, people and enforcement for greater protection of information assets and helps organizations implement a blueprint for security that aligns with business needs. Customers include tens of thousands of organizations of all sizes, including all Fortune and Global 100 companies. Check Point's award-winning ZoneAlarm solutions protect millions of consumers from hackers, spyware and identity theft."

It feels like a week doesn't go by that we don't hear about another major hacking scandal in the business world. It's not going away and corporations have to constantly update their cyber defense. CHKP has been working cyber security since 1993.

Shares of CHKP spent much of this year consolidating gains from 2013. However, the last week of August produced a crucial breakout past resistance near $70.00. Tonight I am suggesting a trigger to buy calls if CHKP can close above $72.50. We'll start with a stop at $69.45. The point & figure chart is bullish and currently forecasting an $89.00 target. We'll start with a long-term target in the $95-100 zone (our target to exit the 2015 calls will be lower).

Breakout trigger: Wait for a close above $72.50
Then buy calls the next morning with a stop at $69.45

BUY the 2015 Jan $75 call (CHKP150117C75)

- or -

BUY the 2016 Jan $80 call (CHKP160115c80)

Option Format: symbol-year-month-day-call-strike

Originally listed on the Watch List: 09/14/14