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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS
Wednesday night play results:
APH: Volume jumped to just above average as APH sold back
BRCM: Rallied higher but then turned over to close and was down a bit more after hours on the XLNX news.
DO: Faded modestly on low volume, testing the 200 day SMA again but still solid.
NTGR: Started the move higher but struggled late in the session with NASDAQ.
New Plays:
Upside:
Play Date: 12/07/2006
DBRN (Dress Barn--$24.55; +0.13; optionable): Apparel stores
http://biz.yahoo.com/p/d/dbrn.html
STATUS: Breakout test. DBRN formed something of a reverse head and shoulders the past 7 months and it blasted higher in late November, surging on strong volume and breaking from the accumulation pattern. It is testing the gain the past week on lower volume, refusing to give up the gain. May take another session or two to finish the test and then head up again as it looks for a new high on this run. A solid market leader that has based well, made the breakout, and is on the first test. That is one of our favorite entry points.
Volume: 1.166M Avg Volume: 1.119M
BUY POINT: $25.05 Volume=1.4M Target=$29.95 Stop=$23.68
POSITION: DTQ CE - Mar. $25c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/dbrn.html
Play Date: 12/07/2006
OSIP (OSI Pharmaceuticals--$38.89; +1.56; optionable): Medical labs
http://biz.yahoo.com/p/o/osip.html
STATUS: Double bottom. Volume jumped above average Thursday as OSIP broke past the 'hump' (38.59) in its 7 week double bottom, starting the breakout. This small base is part of a much larger 2 year correction and is one of the initial bases OSIP has formed as it moves off the bottom of that base. Solid pattern, solid break higher. Positive 2:0 accumulation shows all buying in the base (2 up price weeks on rising volume to 0 down price weeks on rising volume). A buy on a further move from here.
Volume: 1.927M Avg Volume: 1.367M
BUY POINT: $39.11 Volume=2M Target=$46.95 Stop=$37.38
POSITION: GHU DH - Apr. $40c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/osip.html
Downside
Play Date: 12/07/2006
CMVT (Comverse Technology--$19.66; -0.23; optionable): Telecom systems
http://biz.yahoo.com/p/c/cmvt.html
STATUS: Put. CMVT is having issues and they are not getting better. It peaked in March and tumbled lower. It rebounded and rallied back up into October where it ran into the 200 day SMA and that stopped that move up. It gapped sharply lower in mid-November on huge trade. After that it has posted a relief bounce into this month, the entire move on low volume. It reached 20 where there is price resistance, and Thursday it turned down on rising volume. Money flow has fallen ahead of price and is still in the gutter. Looks ready to fall again, and looking to move in as it does. A move to the target lands a 60%ish gain.
Volume: 4.84M Avg Volume: 4.406M
BUY POINT: $19.54 Volume=5M Target=$18.00 Stop=$20.11
POSITION: CQV MD - Jan. $20p (-49 delta)
http://www.investmenthouse.com/ci/cmvt.html
Play Date: 12/07/2006
YHOO (Yahoo!--$26.63; -0.23; optionable): Internet portal
http://biz.yahoo.com/p/y/yhoo.html
STATUS: Put. What if you announced a reorganization and no one cared? Lloyd Braun (not George Kastanza's nemesis on 'Seinfeld') was ushered out the door but it had no effect. YHOO found out, but it did not change much in its pattern. YHOO has been in a year long decline, posting a rebound up to the down trendline the past 6 weeks. It ran into resistance and has faded to the 50 day EMA (26.65) in all of the recent news. Money flow continues to fall well ahead of price, and we are expecting YHOO to continue lower from here, particularly with the way investors and thus YHOO reacted to the reorganization news. A move to the target lands a 49%ish gain.
Volume: 22.412M Avg Volume: 29.064M
BUY POINT: $26.48 Volume=30M Target=$25.00 Stop=$26.89
POSITION: YHQ MY - Jan. $27.50p (-56 delta)
http://www.investmenthouse.com/ci/yhoo.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 market recommendation
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