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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good movers: ACGY; BCSI; BTU; CNX; GSF; PTNR; RIG; SUN
New Plays:
Upside:
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/cd/cpx.html
Play Date: 05/19/2007
MCHP (Microchip--$40.64; +0.55; optionable): Semiconductors
http://biz.yahoo.com/p/m/mchp.html
EARNINGS: Announced 4-26-07
STATUS: Test 18 day EMA. MCHP broke out from a 12 month cup with handle base in late April on its earnings numbers, surging over 42 on the first move. It is now testing that break higher, hitting the 18 day EMA (39.97) last week before bouncing higher to end the week with a solid price and volume move. Indeed volume was above average for the first time since the start of the month. Excellent test and it looks as if a solid bounce is starting; that is where we want to move in.
Volume: 2.322M Avg Volume: 2.008M
BUY POINT: $41.44 Volume=2.6M Target=$47.75 Stop=$39.78
POSITION: QMT JH - Oct. $40c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/mchp.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/cd/mr.html
Play Date: 05/19/2007
STLD (Steel Dynamics--$48.36; +0.80; optionable): Steel & iron
http://biz.yahoo.com/p/s/stld.html
EARNINGS: Announced 4-17-07
STATUS: Flying plateau. STLD broke out from a 9 month base in January. It gave a complete test of that breakout to start March, then recovered and started the current trend higher. It is currently in a two week lateral consolidation, very tight and flat as the 10 and 18 day EMA rose to catch up with it. The did that to end last week. Primed in this nice tight pattern to move higher, and we like how it refused to give up any of its gains. It still has 2 to 3 such breaks higher ahead of it, making this entry point one that still has plenty of upside. Very dynamic pattern.
Volume: 1.675M Avg Volume: 1.89M
BUY POINT: $48.78 Volume=2.1M Target=$56.31 Stop=$46.77
POSITION: RQL HI - Aug. $45c (69 delta) &/or Stock
http://www.investmenthouse.com/cd/stld.html
Downside:
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/cd/simo.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: Strong run higher got a bit dicey mid-week, then gapped higher to close it out. Overextended for now but have to like the run.
AKAM: Testing back up to end the week as the internet stocks got excited on the MSFT buyout of AQNT. It is trying to set up a double bottom, but it is going to have to prove it.
GME: Great recovery last week, topping the prior highs.
MA: Good end to the week after a test of the short term moving average at the 10 day EMA. Nice.
PCLN: All things internet gapped higher Friday after the MSFT deal was announced.
NVDA: Nice volume to end the week as NVDA held the 10 day EMA and bounced. Gave us a new entry on the week and we took it.
Continuing plays that look ready for this week:
AMT
DXPE
EPIQ
NVEC
SMOD
TIE
VMSI
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 investment information
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