Begin part 3 of 3
THE PLAYS
Good Movers: MSFT; QLGC; SAY; SBUX
New Plays:
Upside:
We are looking at the following stocks this week to see how the hold up under the selling pressure. They exhibited relative strength Tuesday and if they do not succumb we will be putting the strongest on the report.
UAPH
ICON
HPC
MOS
IVAC
AHS
PSYS
DRIV
COG
CVNS
BBBB
MFE
Downside:
Play Date: 02/27/2007
BEBE (Bebe Stores--$18.44; -0.79; optionable): Apparel stores
http://biz.yahoo.com/p/b/bebe.html
STATUS: Put. BEBE gapped lower to start the year, then tried to recover ever since. It filled the gap last week, cracking up through the 200 day SMA (19.56) but could not muster any volume. Without that it turned over, falling on some rising trade Tuesday. Ready to fall and follow the money flow lower. A move to the target lands a 45%ish gain.
Volume: 842.88K Avg Volume: 1.175M
BUY POINT: $18.28 Volume=1.2M Target=$16.11 Stop=$18.65
POSITION: KUD PD - Apr. $20p (-63 delta)
http://www.investmenthouse.com/cd/bebe.html
Play Date: 02/27/2007
CHRS (Charming Shoppes--$12.28; -0.41; optionable): Apparel stores
http://biz.yahoo.com/p/c/chrs.html
STATUS: Put. CHRS gapped higher twice in August on its way to a nice run. It peaked on low volume and started to fade. Gapped below the 200 day SMA (12.87) in mid-January, recovered on into February but could not move off that critical level. Started to fade with retail Monday and volume jumped Tuesday as it sold harder. It looks ready to fill those gaps on the way higher and ready to move in on a further move lower. A move to the target lands a 50%ish gain.
Volume: 1.673M Avg Volume: 966.35K
BUY POINT: $12.22 Volume=975K Target=$11.20 Stop=$12.57
POSITION: QSR PV - Apr. $12.50p (-53 delta)
http://www.investmenthouse.com/cd/chrs.html
Play Date: 02/27/2007
SONC (Sonic Corp.--$21.50; -0.79; optionable): Hamburger joints
http://biz.yahoo.com/p/s/sonc.html
STATUS: Put. SONC gapped lower to start the year, falling to the 200 day SMA (22.05) and bouncing along that level for 7 weeks. Tuesday it broke through the 200 day on strong volume, booming lower. It gapped higher in mid-August and now it looks ready to dive lower and fill the gap, following the money flow lower. A move to the target lands a 45%ish gain. Love those stocks that have gaps to fill.
Volume: 1.048M Avg Volume: 616.524K
BUY POINT: $21.37 Volume=625K Target=$20.00 Stop=$22.11
POSITION: ZSQ RX - June $22.50p (-55 delta)
http://www.investmenthouse.com/cd/sonc.html
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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