Editor's Note:

In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:

M - check out Macy's Inc. retail stocks continue to do well and M just broke out past $40.00. This looks like a new bullish entry point.


Chesapeake Granite Wash Trust - CHKR - close: 27.41 change: -0.75

Stop Loss: 28.70
Target(s): 25.25
Current Gain/Loss: unopened
Time Frame: 1 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CHKR is a Delaware statutory trust formed by Chesapeake Energy Corporation (CHK) to own certain royalty interests in oil and natural gas wells in Washita County, Oklahoma producing from the Colony Granite Wash Play within the broader Granite Wash formation of the Anadarko Basin. Essentially the trust is a passive entity with revenues coming from horizontal wells in the Colony Granite Wash formation.

This security has been popular with the dividend crowd because CHKR has a +10% yield. Unfortunately it looks like the stock has topped and is due for a correction. I suspect this will be a short-term trade. We want to get in and get out after capturing a couple of points. There are probably plenty of investors looking to buy this stock on a pullback.

We want to keep our position size small. I am suggesting bearish positions at the open tomorrow with a stop loss at $28.70. Our target is $25.25.

(small positions)

Suggested Position: short CHKR @ (the open)

Annotated chart:

Entry on March xx at $ xx.xx
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume = 322 thousand
Listed on March 21, 2011