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stock recommendation, stock picking
Begin part 3 of 3
THE PLAYS
Good movers: ADM; CTRP; CTXS; FFIV; MSTR; RNVS; WIRE
Weekend play results:
AH: Still set to make the next move.
CHRW: Still looks solid after taking the day off.
CTRP: Excellent break higher
STLD: Faded back to the 10 day EMA on lower trade.
KG: Still hugging the 50 day EMA
PSTI: Ready to roll over as volume edged higher
New Plays:
Upside:
Play Date: 03/13/2006
ACAD (Acadia Pharmaceuticals--$15.37; +0.13; optionable): Biotechnology
http://biz.yahoo.com/p/a/acad.html
STATUS: Ascending triangle. Volume moved back above average Monday as ACAD flirted with the breakout from its 6 week base. Rather typical action Monday as stocks moved higher but then faded to the close. This pattern formed after a big gap higher in late January; ACAD has refused to give up its gains, instead making higher lows above the 18 day EMA (14.72), building pressure from below for a breakout above the constant highs near 15.50. Solid 2 to 0 accumulation (2 up price weeks on rising volume to 0 down price weeks on rising volume) shows net buying during the consolidation, indicating longer term holders are picking up the short term sellers' shares. Strong money flow is leading higher and relative strength is ready to break higher once more.
Volume: 704K Avg Volume: 453.556K
BUY POINT: $15.72 Volume=675K Target=$18.95 Stop=$14.62
POSITION: AQY IC - Sept. $15c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/acad.html
Play Date: 03/13/2006
BKHM (Bookham Technology--$8.35; +0.07; optionable): Optical components, subsystems for communications networks
http://biz.yahoo.com/p/b/bkhm.html
After Hours: $8.38
STATUS: Breakout test. BKHM broke higher from its most recent base in two weeks back, rallying hard and then fading to test, coming back to the 10 day EMA (8.17) on mostly lower trade. It had made a series of bases starting last fall, and continues to perform. Solid fundamentals to go with the price moves. Really improving its sales and earnings and the price is starting to show the appreciation.
Volume: 2.579M Avg Volume: 1.807M
BUY POINT: $8.68 Volume=2.3M Target=$10.72 Stop=$8.11
POSITION: BFQ GU - July $7.50c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/bkhm.html
Play Date: 03/13/2006
DXPE (DXP Enterprises--$24.66; +1.18; no options): Maintenance, repair, and operating products
http://biz.yahoo.com/p/d/dxpe.html
STATUS: Cup w/handle. DXPE has formed a base on base pattern with the current 8 week base on the heels of a 14 week cup base. Excellent 7 to 3 accumulation spanning the two patterns shows plenty of buyers ready to bid the price further and send DXPE on the breakout to a new all-time high. Strong fundamentals to go with the strong technical pattern.
Volume: 196.486K Avg Volume: 174.439K
BUY POINT: $25.55 Volume=262K Target=$32.45 Stop=$22.69
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/dxpe.html
Play Date: 03/13/2006
VTS (Veritas Drilling--$44.12; +0.66; optionable): Oil and gas service company
http://biz.yahoo.com/p/v/vts.html
STATUS: Cup w/handle. While much of the energy sector sold hard the past month, VTS used that pullback to form a new base, a nice 8 week pattern that used the 50 day EMA (41.14) as support as it took a breather and set up for a new 7 year high. Great volume Thursday and Monday as it prepares for the breakout; those big volume jumps are 'get ready' spikes. We were watching VTS but those volume spikes sealed the deal for a play. Looking for a strong break higher from here. Solid technically and excellent sales and earnings growth.
Volume: 1.405M Avg Volume: 556.754K
BUY POINT: $44.72 Volume=750K Target=$53.65 Stop=$42.57
POSITION: VTS HI - Aug. $45c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/vts.html
Good Investing!
Jon L. Johnson and your IH Alerts Team
All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Online Investment Services, LP. or its paid consultants and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on our related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Partners in Online Investment Services, LP. or its paid consultants may, in some instances, include securities mentioned herein and on our web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors.
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stock recommendation
stock picking
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