Editor's Note:

In addition to tonight's new candidate, these stocks caught my eye and might turn out to be potential bullish trades. You'll need to check for potential earnings dates. MCRS, MANT, ZEUS, EAT and LPX look tempting. LPX is due to report earnings on Feb. 10th.

- James


Lincare Holdings Inc. - LNCR - close: 28.37 change: -0.13

Stop Loss: 26.90
Target(s): 29.90, 31.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
The healthcare sector has seen some rocky and volatile moves higher this year but the trend is higher. Now that LNCR has broken out over key resistance near $28.00 the stock could try and catch up to its peers. I am suggesting we open small bullish positions on a dip at $28.00 with a stop loss at $26.90. If triggered our targets are $29.90 and $31.75. Take note that LNCR will probably see some resistance near $29.25 and the $30.00 levels.

FYI: The Point & Figure chart for LNCR is bullish with a $40 target. Plus, investors will be interested to note that LNCR has relatively high short interest. The most recent data listed short interest at 11.6% of the 86-million share float. With the recent breakout this stock could see a short squeeze.

Trigger @ 28.00

- Small Positions Only -

Suggested Position: Buy LNCR stock @ 28.00

- or -

Buy the March $29.00 calls (LNCR1119C29) current ask $0.85

Annotated chart:

Entry on February xx at $xx.xx
Earnings Date 04/19/11 (unconfirmed)
Average Daily Volume: 932 thousand
Listed on February 9th, 2010