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top stock pick, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: CROX; HWCC
New Plays:
Upside:
Play Date: 04/11/2007
NCTY (The9 Limited--$39.99; +0.83; optionable): Chinese online gamers
http://biz.yahoo.com/p/n/ncty.html
Earnings: Announced 2-15-07
STATUS: Breakout test. Exploded higher Monday on huge volume on the rumor EA was buying 19% of NCTY. EA responded no agreement was entered, but NCTY is holding the gains, working laterally the past two sessions on lighter trade, testing the break higher. The move took it out of a 10 week cup with handle base and to a new high. Waiting for the test to complete and then pick it up on the rebound on rising trade.
Volume: 257.687K Avg Volume: 430.252K
BUY POINT: $40.55 Volume=500K Target=$47.95 Stop=$37.71
POSITION: NQT IH - Sept. $40c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/ncty.html
Play Date: 04/11/2007
SMSI (Smith Micro Software--$19.18; -0.51; optionable): Application software
http://biz.yahoo.com/p/s/smsi.html
EARNINGS: Announced 2-28-07
STATUS: Flying plateau. Blasted higher in late March, moving out of a 19 week base on huge trade. It reached 20 on the move, close to an all-time closing high. Working laterally the past two weeks, waiting for the 10 day EMA (18.88) to catch up with it. It is just about there and when they meet we are looking for the move higher to resume. That is when we move in.
Volume: 839.669K Avg Volume: 1.039M
BUY POINT: $19.88 Volume=1.2M Target=$23.95 Stop=$18.74
POSITION: QPM GW - July $17.50c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/smsi.html
Downside:
Play Date: 04/11/2007
CBRL (CBRL Group--$45.21; -0.73; optionable): Family restaurants
http://biz.yahoo.com/p/c/cbrl.html
EARNINGS: 5-22-07
STATUS: Put. Strong volume Wednesday as CBRL broke below the 90 day MA (46.22) that acted as support the past week, trying to prop up CBRL after its gap lower the last week of March. Money flow is at the bottom of the barrel (the cracker barrel) and price is stating to follow it down. A move to the target lands a 44%ish gain.
Volume: 1.499M Avg Volume: 768.492K
BUY POINT: $45.04 Volume=770K Target=$43.50 Stop=$45.65
POSITION: CBQ QI - May $45p (-44 delta)
http://www.investmenthouse.com/ci/cbrl.html
Play Date: 04/11/2007
RECN (RSCS Connection--$30.96; -0.37; optionable): Finance, accounting, risk management, etc. services
http://biz.yahoo.com/p/r/recn.html
EARNINGS: Announced 3-28-07
STATUS: Double top. Volume was up Wednesday as RECN started lower from the 90 day MA (31.47), failing a test of that level Tuesday after breaking below that support Monday. Weak money flow is heading lower, leading RECN lower from its double top in February and March. RECN gapped higher in late December and RECN looks ready to fill that gap. A move to the target lands a 55%ish gain.
Volume: 676.383K Avg Volume: 384.887K
BUY POINT: $30.84 Volume=650K Target=$29.60 Stop=$31.21
POSITION: JJJ QF - May $30p (-37 delta)
http://www.investmenthouse.com/ci/recn.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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top stock pick
stock recommendation
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