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stock recommendation, stock option
Begin part 3 of 3
THE PLAYS
Good movers: FSL; GLBL; GRMN; IFO; LVLT; RMD
Thursday night play results:
HLTH: Took the day off close to the top of the range
MANT: Another nice doji at the 18 day EMA, further setting up the bounce off the test.
RMD: Nice break higher off the 50 day EMA.
New Plays:
Upside:
Play Date: 05/27/2006
ACTG (Acacia Research--$12.12; +1.14; no options):
http://biz.yahoo.com/p/a/actg.html
After Hours: *
STATUS:
Volume: 330.2K Avg Volume: 225K
BUY POINT: $12.26 Volume=285K Target=$14.95 Stop=$11.42
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/actg.html
Play Date: 05/27/2006
COGO (Comtech Group--$16.27; +1.80; optionable): Guns
http://biz.yahoo.com/p/c/cogo.html
STATUS: Ascending base. Got some strong volume Friday as SWB gapped higher and started toward the breakout from its 8 week ascending base. Solid move and ready to continue and deliver the breakout this week. To recap: Nice 6 week base above the 50 day EMA (6.30), setting up the next move after the break higher from an 8 month base in April. Solid 3 to 1 accumulation in the current base shows buyers still moving in even as it consolidates. Relative strength broke out this week even as the stock continues to move in its base, a very bullish indication for a price breakout. With the legislation regarding liability for gun manufacturers, this play has some extra juice behind it.
Volume: 2.116M Avg Volume: 555K
BUY POINT: $16.42 Volume=700K Target=$19.75 Stop=$15.27
POSITION: UWK IC - Sept. $15c (67 delta) &/or Stock
http://www.investmenthouse.com/cd/cogo.html
Continuing upside ready to move:
Play Date: 05/23/2006
SWB (Smith & Wesson Holdings--$6.88; +0.40; no options):
http://biz.yahoo.com/p/s/swb.html
After Hours: *
STATUS:
Volume: 420.4K Avg Volume: 333.723K
BUY POINT: $6.95 Volume=501K Target=$8.35 Stop=$6.55
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/swb.html
Downside: Want to be ready to move the other way if this rebound fails.
Play Date: 05/27/2006
AGIX (Atherogenics--$13.90; +0.11; optionable): Drugs
http://biz.yahoo.com/p/a/agix.html
STATUS: Put. AGIX showed a tombstone doji below the 18 day EMA (14.04) Friday, as it looks ready to continue its downtrend that started right after a strong ballistic shot higher in December 2005. It failed at the 18 day EMA in early May, and after the dump lower through Tuesday it rebounded to try that level again. Volume was very low on the move. Looking for a move down from this level. A move to the target lands us a 47%ish gain
Volume: 227.3K Avg Volume: 650K
BUY POINT: $13.75 Volume=650K Target=$12.47 Stop=$14.06
POSITION: AUB SC - July $15p (-72 delta)
http://www.investmenthouse.com/cd/agix.html
Play Date: 05/27/2006
AMT (American Tower--$31.54; +0.40; optionable): Telecom towers
http://biz.yahoo.com/p/a/amt.html
STATUS: Put. A stock with strong fundamentals that is taking a deeper correction this time around. Even a strong stock such as AMT needs rests, and after a long run it looks ready to base once more to set up the next move higher. For now it looks ready to come back down to continue the process after rebounding on low volume last week to test its tank through the 50 day EMA (32.15). We think AMT will ultimately recover from this, it just has to work out all of the froth. We are looking for AMT to complete the test here at the 10 day EMA (31.57) or maybe up to the 50 day EMA and then turn back down. A move to the target lands us a 49%ish gain.
Volume: 2.398M Avg Volume: 3.2M
BUY POINT: $31.22 Volume=3.3M Target=$29.05 Stop=$31.72
POSITION: AMT ST - July $32.50p (-56 delta)
http://www.investmenthouse.com/cdamt.html
Play Date: 05/27/2006
BJS (BJ Services--$35.33; +0.27; optionable): Oil and gas service company
http://biz.yahoo.com/p/b/bjs.html
STATUS: Double top. BJS was one of those hit energy stocks, surging in January, selling off, then surging back up in April. It set up a very nice cup with handle base but when it came time to deliver the breakout it reversed. It sold off hard, down to 32 on the low. Last week it bounced back, modestly retaking the 200 day SMA (35.27). Volume was lower, however, and intraday BJS tapped the 50 day SMA (36.25) and faded. Looks as if this rebound attempt has just about run out of gas. Looking to move in to the downside move as it rolls back over. A move to the target lands us a 50%ish gain.
Volume: 5.104M Avg Volume: 5.25M
BUY POINT: $35.09 Volume=5.5M Target=$32.50 Stop=$35.55
POSITION: BJS SG - July $35p (-40 delta)
http://www.investmenthouse.com/cdbjs.html
SUBSCRIBER PORTFOLIO: These are stocks subscribers suggest by vote that we put in a portfolio to track and move into the stocks if they perform well. If you have any suggestions for additions or deletions, email us. We don't cover them all each report, just when something interesting is developing.
AAPL, AKAM, CCJ, CELG, FLR, GME, MGPI, MRVL, NVDA, SGMS, WM
New additions: AKAM, CCJ, FLR, MGPI, SGMS, WM
AKAM: Sold off last week, undercutting the 50 day EMA, but rebounded to close right at that level. Nice test but looks as if there is more work to do on this pullback.
CCJ: Industrial metals. May be getting toppy here with something of a head and shoulders. Put it on, however, due to its popularity.
FLR: Heavy construction. Another stock that may be a bit toppy, but holding the 50 day EMA on the test the past two weeks, looking very orderly in its test.
MGPI: Perennial leader in biotech, MGPI is setting up for another run higher after last week's test of the 50 day EMA with a tight doji. Also splits frequently as well. Strong move over 30 on 1.5M is our first entry point.
SGMS: Coming off the 50 day EMA but no volume yet. It needed this test after a strong run and it is doing what a strong stock does after such a move.
WM: Savings and loans. Another popular stocks judging by the results, and given its steady moves it is no wonder. Broke out of a 4 month base in May and has come back to test the 50 day EMA. A bit cautious on this just because of its heavy mortgage business and its announcement of its acquisition of GDW.
Good Investing!
Jon L. Johnson and The Daily Staff
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 of 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 option
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