NEW BULLISH Plays
Manitowoc Co. Inc. - MTW - close: 13.49 change: +0.38
Stop Loss: 11.95
Target(s): 14.95, 16.25
Current Gain/Loss: +0.0%
Time Frame: 10 to 12 weeks
New Positions: Yes, see below
Why We Like It:
Investors have been bidding up construction-related stocks on expectations for a strong 2011. MTW actually has a couple of different businesses but one of them is construction cranes. The rally on Monday pushed MTW to short-term resistance at $13.50. You could wait for a breakout over $13.50 or you could wait for a dip back toward the $13.25-13.00 zone. I am suggesting new bullish positions now but we want to keep our position size small to limit our risk. We're starting this play with a wide (aggressive) stop loss at $11.95. More conservative traders may want to use a stop closer to 412.50 or even Friday's low near 12.70. Our targets are $14.95 and $16.25.
FYI: The Point & Figure chart for MTW is bullish with a long-term $21 price target.
Suggested Position: Buy MTW stock @ current levels.
Buy the 2011 February $14.00 calls (MTW1119B14) current ask $0.65
Entry on January xx at $xx.xx
Earnings Date 02/02/11 (unconfirmed)
Average Daily Volume: 2.0 million
Listed on January 3rd, 2010