Acme Packet, Inc. - APKT - close: 35.57 change: +1.63

Stop Loss: 33.65
Target(s): 39.75
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this technology company appear to have hit a bottom. The stock was crushed in early January on an earnings warning but shares have since recovered significantly. Now APKT is breaking through multiple layers of resistance. Today's show of relative strength is a bullish breakout past the simple 100-dma. Helping fuel gains are relatively consistent rumors that APKT is a takeover target.

I am suggesting a trigger to open small bullish positions at $36.05 with a stop loss at $33.65, which is under the 10-dma. The $40.00 level has been resistance in the past so we'll set our exit target at $39.75. FYI: The Point & Figure chart for APKT is bullish with a long-term $54.00 target.

Trigger @ $36.05 (small positions)

Suggested Position: buy APKT stock @ (trigger)

- or -

buy the Mar $35 call (APKT1217C35) current ask $2.55

Annotated chart:

Weekly chart:

Entry on February xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 4.1 million
Listed on February 15, 2011