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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good movers: BCSI; BHI; BIDU; CCJ; CX; GME; MA; MRO; NTGR; TRMB
New Plays:
Upside:
Play Date: 06/16/2007
ALY (Allis-Chalmers Energy--$22.62; +0.48; optionable): Oil and gas service company
http://biz.yahoo.com/p/a/aly.html
EARNINGS: Announced 5-4-07
STATUS: Cup w/handle. Gapped higher on a jump in volume to above average. The move cleared the handle in its 6 month base formed over the 200 day SMA. The base is setting up after a move to an all-time high, setting up a break to yet another high. A newer issue in the sector (IPO in 1999), ALY sports an earnings growth rate that is one of the bset in the market. Looking to move in as ALY continues this break higher.
Volume: 657.6K Avg Volume: 531.099K
BUY POINT: $22.88 Volume=600K Target=$27.48 Stop=$21.44
POSITION: ALY JX - Oct $22.50c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/aly.html
Play Date: 06/16/2007
EDU (New Oriental Education & Tech--$48.39; -0.11; optionable): Private education services in China
http://biz.yahoo.com/p/e/edu.html
EARNINGS: Announced 4-18-07
STATUS: Double bottom w/handle. EDU has set up a nice 6 week base on the 50 day EMA (45.94), using that key support level to form the two legs to its base. It jumped higher to start last week, then tapered off to close the week, holding onto the gains with a nice, soft, low volume fade. It is setting up for a new all-time high on the breakout move. Another play with excellent fundamentals growth rates to go along with a very nice technical pattern that is setting up for a new all-time high.
Volume: 145.4K Avg Volume: 310.808K
BUY POINT: $49.62 Volume=466K Target=$57.75 Stop=$47.11
POSITION: EDU JJ - Oct. $50c (49 delta) &/or Stock
http://www.investmenthouse.com/cd/edu.html
Play Date: 06/16/2007
GAP (Great Atlantic & Pacific Tea--$34.83; +0.62; optionable): Retail food (A&P)
http://biz.yahoo.com/p/g/gap.html
EARNINGS: 7-20-07
STATUS: Breakout test. GAP broke higher in late May, rallying on strong volume out of a 12 week cup base. It rallied to 35 on that move and then formed the handle this month, coming back to the 18 day EMA (33.62) to start this week, bouncing back and showing some strong volume on Friday as it gapped higher. The move took it back to the early June high, and the upside volume on this move indicates GAP is going to make the breakout to 16 year high.
Volume: 952.3K Avg Volume: 693.042K
BUY POINT: $35.11 Volume=1M Target=$40.55 Stop=$33.89
POSITION: GAP HG - Aug. $35c (50 delta) or GAP KG - Nov. $35c (49 delta) &/or Stock
http://www.investmenthouse.com/cd/gap.html
Play Date: 06/16/2007
GOOG (Google--$505.89; +3.05; optionable): Internet search, etc.
http://biz.yahoo.com/p/g/goog.html
EARNINGS: 7-19-07
STATUS: Test 18 day EMA. GOOG made the break higher in mid-May from a higher low, clearing the April and then the January highs as it moved to a new all-time close. It hit 525 on that move, and has now come back to test, holding just over the 18 day EMA (500) on last week's lows. Excellent volume on the break higher and a textbook test that holds near support at the 18 day EMA as well as the former highs. This is the point where you would look for it to continue the breakout move. Indeed it tried to do it Friday with a sharp gap higher to 509 but giving back half the gains.
Volume: 6.175M Avg Volume: 5.268M
BUY POINT: $509.25 Volume=7M Target=$539.50 Stop=$501.00
POSITION: GOP IU - Sept. $510c (55 delta)
http://www.investmenthouse.com/cd/goog.html
Play Date: 06/16/2007
MVSN (Macrovision--$29.82; -0.11; optionable): Anti-piracy and content protection, game network
http://biz.yahoo.com/p/m/mvsn.html
EARNINGS: Announced 5-8-07
STATUS: Breakout test. In early June MVSN gapped higher out of a 7 month cup with handle base, clearing a 6 year resistance point at 29. It has come back to test that move the past two weeks, but the fade was very limited as MVSN has basically moved laterally, waiting for the 10 day EMA (29.50) to catch up with it. Like how it has refused to give up the gains on the breakout as well as fall back into the range it broke from. Very nice, tight lateral move to test, and looking for a renewed break higher to continue the breakout move. Nice.
Volume: 945.767K Avg Volume: 775.414K
BUY POINT: $30.38 Volume=1.2M Target=$40.45 Stop=$29.38
POSITION: MVU JF - Oct. $30c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/mvsn.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.
Still looking for some replacements for ISE (buy out), NYX (bomb out), and DRIV.
EDU was a clear favorite in the early responses so we have put it in the group.
AAPL, AKAM, CELG, EDU, GME, GOOG, MA, PCLN, NVDA
AAPL: Gapped higher on Friday after a tough week, but a necessary one as it had gone too far with no rest. Now we see if it can resume the move from here.
CELG: Still struggling. Moved back up to the 50 day EMA on Friday, but still very problematical from here.
GME: Nice hold at the 18 day EMA and then a huge gap and run on Friday.
GOOG: Ready to resume the move after this test of the 18 day EMA last week consolidated the strong May move.
MA: Sweet strong move the entire week.
PCLN: Volume moved above average as PCLN moves to a 7 year high. A buy on any kind of test after the 6 session upside move.
NVDA: Out of control to the upside. Nice end to the week on strong volume as it cleared the December 2006 all-time high.
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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