PSS World Medical - PSSI - close: 19.33 change: +0.42

Stop Loss: 18.60
Target(s): 21.50
Current Gain/Loss: unopened
Time Frame: 2 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
PSSI distributes medical products and offers services for medical offices. The stock has been crushed this month thanks in part to a disappointing earnings report on May 10th. Yet now the stock is starting to bounce from significant support in the $19-18 area (see the weekly chart below).

This could be a good spot to bet on an oversold bounce. I am suggesting small bullish positions tomorrow morning at the open. We will target a bounce to $21.50.

(small positions)

Suggested Position: buy PSSI stock @ (the open)

- or -

buy the Jun $20 call (PSSI1216F20) current ask $0.50

Annotated chart:

Weekly chart:

Entry on May xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 928 thousand
Listed on May 21, 2011