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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Upside:
Play Date: 10/29/2007
BGC (General Cable--$71.58; +1.95; optionable): wire and cable
http://biz.yahoo.com/p/b/bgc.html
EARNINGS: 10-31-07 after the close
STATUS: Cup w/handle. Taking another look at BGC as it held the 50 day EMA (68.80) on last week's low and bounced modestly. Pretty nice handle has formed the past two weeks to a 15 week base. Strong run in 2006 through July and this base is allowing it to digest the gains and set the foundation for the next breakout and run higher. Looking for some solid volume as it makes the break higher. Earnings are after the Fed decision comes out and that gives us a really good look after the announcement and ahead of the earnings after the close.
Volume: 1.07M Avg Volume: 1.726M
BUY POINT: $72.11 Volume=2.6M Target=$82.95 Stop=$69.48
POSITION: BGC BN - Feb. $70c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/bgc.html
Play Date: 10/29/2007
DRYS (Dryships--$130.97; +7.47; optionable): Bulk shipping
http://biz.yahoo.com/p/d/drys.html
EARNINGS: Third week of November
STATUS: Flying plateau. Made us some great money in its September to October run following its August breakout. One of the strongest runners in the market, it refused to give up any gains as it took a breather, and Monday it was moving higher on a super shot of volume, clearing the recent highs in this two week range. Ready to move in as DRYS continues its run.
Volume: 5.285M Avg Volume: 2.608M
BUY POINT: $131.48 Volume=3.2M Target=$157.45 Stop=$125.92
POSITION: DQR AV - Jan. $130c (58 delta)
http://www.investmenthouse.com/cd/drys.html
Play Date: 10/29/2007
SCHW (Charles Schwab--$23.32; +0.57; optionable): Investment brokerage
http://biz.yahoo.com/p/s/schw.html
EARNINGS: 10-15-07
STATUS: Reverse head and shoulders. Starting the breakout move from its 20 week base on Monday, moving higher on above average volume. Volume started higher on Thursday after it came off the 50 day EMA (21.54) that acted as the bottom of the right shoulder to the pattern. Solid volume as it made the break higher, and looking to move in as it continues the breakout move.
Volume: 8.327M Avg Volume: 9.033M
BUY POINT: $23.48 Volume=10M Target=$27.12 Stop=$22.28
POSITION: SHQ AX - Jan. $22.50c (63 delta) &/or Stock
http://www.investmenthouse.com/cd/schw.html
Play Date: 10/29/2007
TDG (TransDigm Group--$46.01; +3.05; optionable): Aerospace/defense
http://biz.yahoo.com/p/t/tdg.html
EARNINGS: Second week November
STATUS: Test 50 day EMA. TDG is a top rates stock in terms of earnings growth rates and it has a great pattern to go with it. It broke higher in late September from an 11 week reverse head and shoulders base. It rallied to 47 in late September and has since come back to test, falling to the 50 day EMA (43.11), holding there last week. Monday it was back in the game, rallying nicely on stronger, above average volume. Nice test and ready to move in as TDG continues its breakout move.
Volume: 241.3K Avg Volume: 231.877K
BUY POINT: $46.25 Volume=250K Target=$55.45 Stop=$43.88
POSITION: TDG BI - Feb. $45c (52 delta) &/or Stock
http://www.investmenthouse.com/cd/tdg.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, EDU, GME, GOOG, MA, PCLN, NVDA, VLO
AKAM: Continues the move higher after breaking above the 90 day SMA last week. Has that big gap lower from 46 to fill. Hmmm.
CELG: Gapped higher to test toward the 50 day EMA then turned lower. A good time to sell some calls on any stock positions.
GME: Still working laterally above the 18 day EMA on mostly low volume as it continues its 5 week flat base.
PCLN: Bouncing off the 50 day EMA on volume. Time to buy on a continued bounce higher from here.
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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