A few additional candidates you may want to put on your watch list. I'd wait for a dip on these:
AGP, IBM, and CLB
NEW DIRECTIONAL CALL PLAYS
Sociedad Quimica Minera de Chile - SQM - close: 65.97 change: +0.23
Stop Loss: 59.75
Target(s): 67.25, 69.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger
Why We Like It:
SQM is in the fertilizer and agricultural chemical business. This particular industry is drawing more buyer interest as estimates rise for global fertilizer demand over the next six to eighteen months. Shares have SQM have been pretty consistent with a bullish trend of higher lows. The stock hit new all-time highs today over $66.00 but volume is fading. I am expecting a pull back soon.
We want to launch bullish positions on a dip at $63.00 with a stop loss at $59.75. If triggered our upside targets are $67.25 and $69.75. Traders could certainly aim higher but we don't want to hold over the late August earnings.
NOTE: There is always a little extra risk trading a foreign company's stock since the stock will tend to jump around based on trading back in its home country. Readers may want to keep their position size small.
Trigger @ 63.00
- Suggested Positions - These will obviously be cheaper when SQM dips to $63.
buy the Aug. $65 call (SQM1120H65) current ask $3.10
- or -
buy the Oct. $70 call (SQM1122J70) current ask $2.30
Entry on July xx at $ xx.xx
Earnings Date 08/30/11 (unconfirmed)
Average Daily Volume = 558 thousand
Listed on July 6, 2011