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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: BHI; BIDU; EDU; GME; GRMN; GOOG; HURN; MA; RIG; SUN; WNR
New Plays:
Upside:
Play Date: 06/18/2007
GES (Guess? Inc.--$49.33; +0.01; optionable): Apparel
http://biz.yahoo.com/p/g/ges.html
EARNINGS: Announced 6-5-07
STATUS: Flying plateau. GES surged in June ahead of its earnings, breaking out from a 14 week flat base. Nice run, making a final gap when earnings were announced. GES has moved laterally the past two weeks, consolidating that gain, and importantly, giving up no ground, not even during the market selling. Friday volume spiked up as GES held its tight lateral range. It had one of those Monday as well. We call those 'get ready' spikes because they indicate big accumulation as the stock holds steady, crouching for the jump higher. Moves can be explosive from this type of pattern, so we are looking to move in fast when GES starts its break higher. Strong stock with a good pattern and with some of the best earnings growth rates in the market.
Volume: 674.2K Avg Volume: 1.458M
BUY POINT: $50.04 Volume=2.2M Target=$57.75 Stop=$48.04
POSITION: GES IW - Sept. $47.50c (65 delta) or GES IJ - Sept. $50c (50 delta) &/or Stock
http://www.investmenthouse.com/cd/ges.html
Play Date: 06/18/2007
NUVA (Nuvasive--$26.89; +0.39; optionable): Surgical treatment of the spine products and devices
http://biz.yahoo.com/p/n/nuva.html
EARNINGS: Announced 4-25-07
STATUS: Double bottom. NUVA has formed a 9 week double bottom after a strong gap higher on late April on its earnings results. That move gapped a modest run but the move never really got underway. with the current base on base action we are looking for more upside on a breakout move. It broke higher Friday on rising, average trade, the best since early June, but Monday volume was low as it continued higher to the early May highs in the base. It is likely to form something of a handle here, a low volume lateral move for a few sessions that shakes out the last sellers. Then we look for a break higher on some above average volume as it moves to a new all-time high.
Volume: 164.748K Avg Volume: 263.393K
BUY POINT: $27.25 Volume=350K Target=$32.75 Stop=$26.08
POSITION: QNU IE - Sept. $25c (71 delta, 121 OI) &/or Stock
http://www.investmenthouse.com/cd/nuva.html
Play Date: 06/18/2007
RYI (Ryerson Tull--$39.44; +0.02; optionable): Metal fabrication
http://biz.yahoo.com/p/r/ryi.html
EARNINGS: Announced 5-2-07
STATUS: Double bottom w/handle. RYI is forming a nice, compact 7 week base at the 50 and 90 day SMA. After a solid January to April run RYI needed to consolidate and set up once more. This base is doing that and on Friday RYI gapped up on strong volume. It faded Monday on very low trade, currently forming the handle to its pattern. This is where it shakes out the last sellers and sets up a breakout move. Looking for RYI to take us to a new all-time high on this run when it shows us the breakout.
Volume: 531.4K Avg Volume: 770.814K
BUY POINT: $40.35 Volume=1.2M Target=$46.45 Stop=$38.84
POSITION: RYI IH - Sept. $40c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/ryi.html
Downside:
Play Date: 06/18/2007
FLML (Flamel Techologies--$24.80; -1.70; optionable): Drug delivery
http://biz.yahoo.com/p/f/flml.html
EARNINGS: Announced 5-7-07
STATUS: Put. Struggling under distribution this month, breaking hard below the 200 day SMA (27.69) to start the month for the first time since October. It rebounded last week to test that move then failed at the 18 day EMA (near resistance) and tanked on strong volume Monday. Money flow is weak and leading lower. Looking to move in as FLML continues its run downside. A move to the target lands a 40%ish gain. That is our initial target and if it is falling hard at that point it still has more downside to 22 before it has a support level.
Volume: 597.977K Avg Volume: 518.865K
BUY POINT: $24.64 Volume=525K Target=$22.50 Stop=$25.12
POSITION: FLU TE - Aug. $25p (-45 delta)
http://www.investmenthouse.com/cd/flml.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: Gapping higher on strong volume once again after a test of the 18 day EMA.
EDU: What a great start to this stock!
GOOG: Nice break off of the 18 day EMA.
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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us stock market
stock recommendation
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