Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these may need to see a break past key support or resistance:

(bullish ideas)

(bearish ideas)


Nuance Communications, Inc. - NUAN - close: 18.31 change: -0.19

Stop Loss: 19.05
Target(s): 15.15
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 28, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
NUAN is in the software industry. They're probably best known for their voice recognition, voice control, text to speech and speech to text solutions. The market seems unhappy with NUAN's recent decision to enact a "poison pill" amendment that prevents any one investor from owning more than 20% of NUAN shares without board of director approval. It looked like a move to head off activist investor Carl Icahn, who owned more than 15%.

The stock has been struggling since its April 30th sell-off after NUAN missed both top and bottom line earnings estimates. Shares have been bouncing around the $18-20 zone for months and now NUAN looks poised to breakdown below key support near $18.00. The August 7th low was $17.90. I am suggesting a trigger to open bearish positions at $17.80.

Trigger @ 17.80

Suggested Position: short NUAN stock @ (trigger)

- (or for more adventurous traders, try this option) -

Buy the Oct $18 PUT (NUAN1319v18) current ask $0.90

Annotated chart: