Compass Minerals - CMP - close: 92.21 change: +2.21

Stop Loss: 87.75
Target(s): 94.75, 99.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: See below

Company Description
Based in the Kansas City metropolitan area, Compass Minerals is a leading producer of minerals, including salt, sulfate of potash specialty fertilizer and magnesium chloride. The company provides highway deicing salt to customers in North America and the United Kingdom and specialty fertilizer to growers worldwide. Compass Minerals also produces consumer deicing and water conditioning products, ingredients used in consumer and commercial foods, and other mineral-based products for consumer, agricultural and industrial applications. Compass Minerals also provides records management services to businesses throughout the U.K. (source: company press release or website)

Why We Like It:
Yesterday I listed CMP in my editor's note as a watch list candidate. The rally continues with shares up four days in a row. Today is significant because shares have broken out through the top of its trading range and resistance near the $90.00 level. We can probably blame the huge snow storms in the northeast for the move higher since CMP owns a highway deicing salt business.

The breakout higher is bullish and traders may want to buy calls right now. However, I'm hoping for a dip back to the $91.00 level. The newsletter is setting a trigger to buy calls at $91.00. Stop loss at $87.75. Our targets are $94.75 and $99.00.

Trigger @ 91.00

- Suggested Positions -

Buy the 2011 February $95.00 calls (CMP1119B95) current ask $1.60

- or -

Buy the 2011 March $95 calls (CMP1119C95) current ask $2.40

Annotated Chart:

Entry on January xxth at $ xx.xx
Earnings Date 02/08/11 (confirmed)
Average Daily Volume = 210 thousand
Listed on January 27th, 2010