Three New Trades
Dear Bottarelli Research Member,
On this, the first trading day after Christmas, three instant trading opportunities have propped up. One is a stock-split play, one is a new 52-week high play, and one is the combination of both. All three plays could double your money by March of 2006.
So let’s get right into it…
TALX Corporation (TALX – NASDAQ) is a pure play on upcoming tax season — combined with credit, lending, and employment screeners.
TALX Corporation provides employment and income verification and tax management services that enable mortgage lenders, pre-employment screeners, credit issuers, and social service agencies to obtain payroll and human resources information.
On November 14th, the company announced a 3-2 stock split that’s going into effect on January 18th. And as you can see by the chart, it’s also hitting a new 52-week high today.
With the chart in an indisputable up-trend, there’s no stopping the stock from breaking $50.00 a share in the near-term…with the possibility of a carry-forward move up to $55.00 by the end of January.
PLAY: Buy the TALX February 45 Calls (TUB BI) at or under $4.60, good for the day. Current bid/ask spread is $4.00 to $4.60 (a very wide spread in my view) so place your orders just under $4.60 to get filled. Place a protective stop loss at $3.00.
On November 2nd, Psychiatric Solutions (PSYS – NASDAQ) announced a 2-1 stock split effective on January 10th 2006. When you look at the chart, you see a solid bounce off the 50-day moving average, which signals that the company could break its recent high-water mark at $59.89. But it wasn’t until I read the company description that I got really exited about this play.
Psychiatric Solutions provides behavioral health care services in the United States, with 34 owned or leased inpatient facilities (approximately 4,000 beds) in 19 states. The company offers behavioral health care services for children, adolescents, and adults.
I don’t know about you, but everywhere I look I see more and more troubled teenagers and adults. It’s an “unspoken” epidemic in American that’s getting a lot worse. And unlike the Big Pharma say of drugging you up, Psychiatric Solution’s behavioral programs could be a healthy and effective way to properly correct the root of these problems. For that, I like the company and the market niche they’re addressing with their services. I’d look for the stock to trade over $60.00 in the very near future.
PLAY: Buy the Psychiatric Solutions February 60 Calls (BYU BL) at or under $3.00, good for the day. Current bid/ask spread is $2.70 to $2.90. Place a protective stop loss at $1.60.
The final play Integraph (INGR – NASDAQ), a company which just today hit a new 52-week high. Integraph is a global provider of spatial information management software — SIM for short. This software is unique in that it transforms data into clear, actionable information in such forms as maps and 3D drawings.
The practical application of this software can be applied virtually anywhere. It’s used in the design, construction, and operation of power plants, offshore rigs, and ships…plus its’ also used by the police, the fire department, emergency workers, and military forces.
PLAY: Buy the Intergraph February 50 Calls (INQ BJ) at or under $3.00, good for the day. Current bid/ask spread is $2.80 to $2.90. Place a protective stop loss at $1.70.
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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