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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good movers: ACGY; BCSI; BTU; CEPH; CNX; GS; GSF; OIH; PTNR; RIG; SUN
New Plays:
Upside:
Play Date: 05/18/2007
CBG (CB Richard Ellis--$37.33; +0.52; optionable): Property management
http://biz.yahoo.com/p/c/cbg.html
EARNINGS: Announced 5-1-07
STATUS: Cup w/handle. After a shakeout early last week, CBG tapped the 50 day EMA on the low and rebounded to close out the week, showing a nice jump in volume off that key support level. Very solid action in its 15 week pattern as CBG sets perched on the cusp of a breakout to a new all-time high. Excellent fundamentals and technical pattern. Looking for volume to remain strong as CBG follows its rising money flow higher. Now conventional wisdom would say that anything real estate would not be a great idea. But the economic data is heading back up, not down, and that means the commercial real estate CBG deals with will continue to be in demand.
Volume: 2.492M Avg Volume: 2.122M
BUY POINT: $38.32 Volume=3.2M Target=$44.32 Stop=$36.25
POSITION: CBG IG - Sept. $35c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/cbg.html
Play Date: 05/19/2007
CCJ (Cameco--$50.05; -0.54; optionable): Industrial metals and minerals
http://biz.yahoo.com/p/c/ccj.html
EARNINGS: Announced 7-27-07
STATUS: Flying plateau. CCJ broke out from a 12 month base to start April. It rallied a solid 8 points and then moved laterally through the month. Once the 10 and 18 day EMA caught up with it, CCJ jumped higher again in May, rallying up to 52. It has spent the past two weeks working laterally once more as the short term moving averages rise to meet it. This lateral move is even better than the prior one as it is tighter and on very nice, low volume. This is just the second such test since the breakout, and this type of run typically yields 4 to 5 bounces off the 10 or 18 day EMA. CCJ is perched on the 10 day EMA (49.92), ready to make the next run higher. Looking for that volume to kick back up as it does; that is our entry signal to grab onto the next run.
Volume: 2.494M Avg Volume: 2.93M
BUY POINT: $51.25 Volume=3.5M Target=$58.95 Stop=$49.08
POSITION: CCJ IJ - Sept. $50c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/ccj.html
Play Date: 05/19/2007
CPX (Complete Production Services--$26.72; +0.77; optionable): Oil & gas service company. Specialized services for developing reserves
http://biz.yahoo.com/p/c/cpx.html
EARNINGS: Announced 4-25-07
STATUS: Double bottom w/handle breakout. Producing a complete breakout move. A new issue in April 2006, CPX blasted out of its first base, a 12 month double bottom, in late April on those strong earnings. It rallied to 26 and then started the test. It refused to give up any ground on the test, instead moving laterally as the 10 and 18 day EMA jumped up to catch up with it. Friday volume jumped above average as CPX cleared the highs in that consolidation. Money flow is surging higher ahead of price. Excellent fundamentals growth rates to go with the strong pattern. Ready to move in as CPX continues this run higher toward a new all-time high. Very nice play that is complete on both the fundamental and technical side.
Volume: 804.8K Avg Volume: 452.613K
BUY POINT: $27.05 Volume=500K Target=$32.50 Stop=$25.32
POSITION: CPX JE - Oct. $25c (67 delta) &/or Stock
http://www.investmenthouse.com/ci/cpx.html
Play Date: 05/19/2007
MR (Mindray Medical Intl.--$27.80; +1.70; optionable): Medical instruments in China
http://biz.yahoo.com/p/m/mr.html
EARNINGS: Announced 5-15-07
STATUS: Double bottom w/handle breakout. No this is not a mind reading device maker. MR is another relatively new issue, coming public in September 2006. It rallied, broke higher in February, but it could not hold the run, falling back into the current 12 week base. Now it looks set. It broke higher on earnings, forming the right side of the pattern. It then backed off on some profit taking Wednesday and Thursday as volume faded. Friday it blasted higher once more, again on strong trade. We are ready to move in as it continues the run higher. Another stock with excellent fundamentals growth rates to go along with its strong technical pattern.
Volume: 1.371M Avg Volume: 706.835K
BUY POINT: $27.95 Volume=750K Target=$33.55 Stop=$25.99
POSITION: MR JE - Oct. $25c (71 delta) &/or Stock
http://www.investmenthouse.com/ci/mr.html
Downside:
Play Date: 05/19/2007
AKAM (Akami Technologies--$44.47; +1.26; optionable): Internet services
http://biz.yahoo.com/p/a/akam.html
EARNINGS: Announced 4-25-07
STATUS: Put. After leading NASDAQ with gains in 2006 AKAM is not doing the same in 2007. It tried to base from February to April, but when earnings disappointed in late Aril it collapsed. It fell through the 200 day SMA and then tried to work laterally this month. It rebounded up to the 10 day EMA (44.22) and failed two weeks back, and last week it rebounded again, gapping higher Friday just over the 10 day EMA on the AQNT takeover; that made anything related to internet commerce excited. We don't expect that will last, however, and when AKAM breaks back below the 10 day EMA we are looking to ride the next leg lower. A move to the initial target lands a 40%ish gain.
Volume: 5.641M Avg Volume: 4.819M
BUY POINT: $44.05 Volume=6M Target=$41.54 Stop=$44.68
POSITION: UMU SI - July $45p (-47 delta)
http://www.investmenthouse.com/ci/akam.html
Play Date: 05/19/2007
SIMO (Silicon Motion Technology--$21.61; +0.61; optionable): Semiconductors
http://biz.yahoo.com/p/s/simo.html
EARNINGS: Announced 4-26-07
STATUS: Double top. SIMO made is some strong cash on the upside with its early 2007 run. Superlative. Then it ran so hard it ran out of road and peaked in March. Rallied again but made a second top as it gapped higher on earnings then suffered a nasty reversal. It broke lower, cracked the 90 day MA (21.73) last week on volume, then rebounded to test that breach on lower volume to end the week. Looking for this test to fail and take SIMO lower again. As it does we will look to capitalize on the downside move. A drop to the target lands a 42%ish gain.
Volume: 489.076K Avg Volume: 934.176K
BUY POINT: $21.41 Volume=950K Target=$19.72 Stop=$21.88
POSITION: MQI SD - July $22.50p (-53 delta)
http://www.investmenthouse.com/ci/simo.html
Continuing Plays that look ready this week:
AMT
DXPE
NVEC
RIMM
SKS
SMOD
TIE
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 investment information
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