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stock recommendation, stock pick
Begin part 3 of 3
THE PLAYS
Good movers: CXW; FALC; NIHD; PTNR; ROCM; SUN; TRMB
New Plays:
Play Date: 04/28/2007
ESV (Ensco Intl.--$56.84; +1.09; optionable): Offshore contract drilling
http://biz.yahoo.com/p/e/esv.html
EARNINGS: Announced 4-24-07
STATUS: Cup w/handle. ESV broke higher Friday after some strong earnings results, clearing resistance on a nice volume surge. That took it out of a 5 week consolidate of the late March breakout from its 14 week pattern. All of this is part of a larger year long accumulation pattern, and that set the stage for a good run here. After refiners led the initial energy surge, the offshore drillers are taking up the torch so to speak. Nice breakout and looking to move in as ESV drills higher.
Volume: 4.506M Avg Volume: 3.047M
BUY POINT: $57.12 Volume=3.2M Target=$65.75 Stop=$54.55
POSITION: ESV IK - Sept. $55c (69 delta) &/or Stock
http://www.investmenthouse.com/cd/esv.html
Play Date: 04/28/2007
GSF (Globalsantafe--$65.34; +1.16; optionable): Oil and gas drilling
http://biz.yahoo.com/p/g/gsf.html
EARNINGS: 5-2-07
STATUS: Ascending base. Volume surged Friday as GSF started the breakout move from its 17 week base that made a series of higher lows above the 50 day EMA. Some very good price/volume action the past few weeks with volume looking solid as it bumped the breakout point. Earnings are next week, but really like the pattern, the breakout strength, and the stock's backers. Still looking to buy on this breakout and then see what happens after earnings and pick up some more shares on the next test.
Volume: 6.675M Avg Volume: 4.283M
BUY POINT: $65.57 Volume=6M Target=$75.30 Stop=$63.28
POSITION: GSF JM - Oct. $65c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/gsf.html
Play Date: 04/28/2007
GSOL (Global Sources Ltd.--$17.96; +0.72; no options): Business to business media company providing marketing services
http://biz.yahoo.com/p/g/gsol.html
EARNINGS: 5-22-07
STATUS: Test breakout. GSOL shot higher two weeks back on no particular news, surging higher and forming the right side of its 14 week base. It almost reached 20 before fading to tap at the 50 day EMA (16.57) on the Thursday low. Friday it bounced off of that support. Looking for some more volume as it continues higher to start the play. GSOL has some solid earnings growth rates to go along with its pattern. It can fly when it gets the notion.
Volume: 125.864K Avg Volume: 165.705K
BUY POINT: $18.18 Volume=245K Target=$22.95 Stop=$16.98
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/gsol.html
Play Date: 04/28/2007
PRFT (Perficient--$22.16; +0.96; optionable): eBusiness solutions
http://biz.yahoo.com/p/p/prft.html
EARNINGS: 5-10-07
STATUS: Test 50 day EMA. Looking at PRFT again as it comes off the 50 day EMA (20.93) after making a full test of the early April breakout from its 8 week reverse head and shoulders base. It held key support on the test and bounced nicely Friday on a shot of rising, above average volume. Money flow remains solid even through the test. Looking to move back in as PRFT continues this surge off the 50 day EMA.
Volume: 431.39K Avg Volume: 392.273K
BUY POINT: $22.48 Volume=500K Target=$26.95 Stop=$20.91
POSITION: UTJ GX - July $22.50c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/prft.html
New buy point on current play:
Play Date: 04/28/2007
CELG (Celgene--$61.92; -0.07; optionable): Biotechnology
http://biz.yahoo.com/p/c/celg.html
EARNINGS: 5-3-07
STATUS: Breakout test. CELG blasted out of a 16 week base 10 days back on a nice volume surge. The move took it to a new high and then it started to test the move, sliding laterally on low volume last week, refusing to give up any gains. Looking for another strong break higher; may come before earnings or with the results. If it gives us another good move ahead of the results we will add positions into the number though there is always an associated risk even with a strong stock such as CELG.
Volume: 2.713M Avg Volume: 3.898M
BUY POINT: $62.65 Volume=4.5M Target=$69.95 Stop=$60.38
POSITION: LQH GL - July $60c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/celg.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, CELG, DRIV, GME, GOOG, ISE, MA, PCLN, NVDA, NYX
AAPL: Posted some upside Friday after the Thursday gap and fade on strong earnings. Volume was below average Friday so not putting too much stock in that move. Will have to see how it handles the test of that gap to see if AAPL gives us another buy point.
AKAM: Three very ugly days as AKAM failed to deliver on earnings. Breached the 200 day SMA and is still heading lower.
DRIV: Volume is ramping up as DRIV really puts it into gear.
GME: Fading back to test that strong move, still holding above the 18 day EMA though volume jumped above average Friday. Trying to test that gap higher by holding its gains.
MA: Strong break higher Friday out of its 5 week lateral move. Could not resist this one and issued an alert on it. Still a buy on this move and even better on a modest test.
NVDA: Broke over the 90 day MA this week and then started a test Friday. After that test holds the 90 day it will be ready for a buy on the rebound move.
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 pick
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