Check out these stocks on my radar screen. There might be a few more bullish candidates here: OII, EW, UTHR, TEVA, SHLD, BIO, TEVA, and aggressive traders might want to buy the dip in AMZN with a stop under the recent low.
NEW DIRECTIONAL CALL PLAYS
Cerner Corp. - CERN - close: 101.87 change: +1.04
Stop Loss: 97.75
Target(s): 104.85, 109.00
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below
Why We Like It:
CERN is a healthcare information services company. With healthcare stocks showing relative strength this seems like a good way to get exposure to the sector and still play to strength in techs. The recent breakout over resistance near $100 is very bullish. I am suggesting call positions now. Our profit targets are $104.85 and $109.00.
FYI: I want to point out that the most recent data (as of Feb. 15th) listed short interest at 13.9% of CERN's 70-million share float. That definitely seems like a high amount of shorts and fuel for a short squeeze. Plus, the Point & Figure chart for CERN is bullish with a $115 target and what appears to be a relatively fresh quadruple top breakout buy signal.
- Suggested Positions -
Buy the April $105 calls (CERN1116D105) current ask $2.45
- or -
Entry on March 3rd at $ xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 600 thousand
Listed on March 2nd, 2010